Washington Township (part 2 of 12)

Hon. Louis Mclaxe President Re-Location, 35

atljaceut counties, amounting to more than one thousand citizen soldiers, were conveyed to Washington and back by four locomotive engines, one of conveyed three hundred troops, Avitli their arms and accoutrements. Although the full power of the engines was by no means brought into play on this meniorable occasion, yet the result had a very impressive utfect on the many thousands who had witnessed it, and who were thus furnished with ocular demonstration of the new and immense facilities created by railroads and locomotive engines upon them, in the transit of persons and property, and in fact of whole armies and their accompaniments.

The Hon. Louis McLane entered on his duties as President of the company in April of the year 1837. The first annual report bearing his signature, dated on the 1st of October, 1837, expresses the determination of the Board to steadily proceed in the reconstruction rather than the repair of the old track, Avhich would expose the road and the machinery on it to great dilapidation.

In January, 1838, the inclined planes over Parr's Eidge at Mount Air}', forty-one miles from Baltimore, which had up to that time been overcome by stationary horse-power, Avere superseded by a new road around the planes; and more than thirteen miles of other parts of the road, including important alterations in some of the most abrupt and diliicult curves, were completed during tlie mouth of March, 1838. The alteration of the planes decreased the annual expenses of the road upwards of $20,000. The late John H. Done, superintendent of the Illinois Central Road, was in the engineer's corps at this period.

At the close of the tliird year the dividends on the Washington Branch, in money and stock, valuing the stock at par, amounted to fourteen per cent., or four and two-thirds per cent, per annum - wJiilst it also paid to the State, in the shape of bonus, one-fifth of all the munej" received from the conveyance of passengers, Avhich, to the 30th of September, 1838, amounted in the aggregate to $112,963 70.

The reconnaissance and preliminary surveys from Harper's Ferry to the Ohio River, conducted by B. H. Latrobe, together with the estimate of the cost of the entire work, were fully ])repared in the course of the year 1838. They reported the practicability of locating a satisfactory route to the Ohio River, embracing botii Wheeling and Pittsburg, at the maximum elevation of sixty-six feet to the mile ; and that the cost of construction, with a single track of the most durable plan from Cumberland to both points, would not exceed nine millions and a half of dollars. The time allowed for the occupation of any part of the territory of Virginia expired in the month of July in that year, and it became necessary, before atteraptingto proceed fnrtber Avith the work, to make an application for the renewal of the charter in that State. Measures were immediately taken for that purpose, and President McLane, with a committee of the directors and the chief engineer, attended at Riclnnond, during the session of 1838, to urge the application.

In the mean time, however, new interests, less favorable to the extension of the work through that State, had arisen, and that wliich, at an earlier day, might have been comparatively easy of accomjilishment, had then become a task of great ditficulty. A law was finally passed, however, extending the time for completing the work to five years : but it deprived the company of the option of selecting between the routes from Harper's Ferry to Cumberland, in the State of Maryland, and those in the State of Virginia ; and made it an express condition that the road should pass into Virginia at Hai-per's Ferry, be thence constructed through the State to about five and a half miles below Cumberland, and that Wheeling sJiould ie made one of the termini. The law also authorized an additional subscription of $1,058,420 upon the part of Virginia, being two-fifths of the estimated cost of so much of tiie road as was re(iuired to be made in that State between Har[)er's Ferry and Cumberland.

According to this condition, which was the best it was possilile to obtain, the company was not only required to pass into Virginia at Harper's Ferry, but was also obliged to abandon altogether the extension of the road to Wheeling, or to leave the limits of the State of Maryland for nearly the entire distance between Harper's Ferry and Cumberland. The validity of the act depended upon its acceptance by the stockholders, including the State of Maryland; and independently of the other consequences involved in the condition, it first became necessary to ascertain the practicability of crossing at Hari)er's Ferry. The crossing at that point could only be effected by occupying a part of the government property, or about six mile" of the Winchester and Potomac Railroad, and neither could be used Avithout the voluntary assent of the res[)ective proprietors.

The Winchester and Potomac Kailroad Company positively refusing their assent to the joint use of six miles of their road, an arrangement was finally concluded with the Secretary of War, by President McLane, by which permission to occupy the necessary parts of the public property was granted. The law of Virginia was then duly accepted by the stockholders, and it became the duty of the Board to promptly carry out their decision.

Companies of engineers, adequate to the location of tlio entire line from Harper's Ferry to Cumberland, were promptly organized under B. IT. Latrobe, with instructions to prepare the road for contract early in the ensuing spring. Similar corps were also employed in locating the road from Wheeling towards the Pennsylvania line, with instructions to the same ettect; so that the work might be prosecuted with as much dispatch as the means at their command would admit.

On account of tlie dittieulties in the money market during llie years 1839 and 1840, the Board deemed it an act of proper precaution to suspend their operations west of Cumberland, and accordingly called in the corps of engineers who had been engaged in that |)art of the service. The right of way having been procured through Virginia frojn Harper's Ferry, that [lortion of tlie road was placed under contract during the summer, and progressed with good speed under judicious and energetic management.

The subscrii)tion of $3,000,000, on the part of the State of Maryland, was originally jjayable to the company in money, by the State treasurer, to be raised from the sale of currency bonds, bearing an interest of six per cent. These bonds, however, were directed to be offered for sale first in Europe before they could be sold elsewhere ; and in order to provide for the interest for a period of three years, could only be sold at a premium of 20 per cent. These terms proving impracticable, and the State's commissioner in England representing tiiat sterling bonds would be more salable in the European markets, tlie Legislature substituted sterling bonds, bearing an interest of tive per cent., payable, principal and interest, in London. It being obvious, from inquiries made both at Philadelphia and New York, that they could not be advantageously disposed of in the United States, Mr. McLane, at the request of the Board, was induced to proceed to Europe, there to make such arrangements as he should deem best for their final disposition.

By the time these bonds could be prepared and forwarded to London, a very unfavorable change had taken place in the European markets. American securities had accumulated there in an unprecedented quantity, and a general depression had taken place in their value, which rendered the sale of any portion of those belonging to the railroad company - unless at prices prejudicial to the State, and ruinous to the interests of the comjiany - absolutely impossible.

Consulting not more the interests of the company than the credit of the State, so necessary to the prosecution of all her public enterjirises, President McLane declined disposing of any portion of the bonds comraitted to hiin at the prices established by other sales, bnt succeeded in eftectiug an arrangement with Messrs. Baring Brothers & Co., of London, to make a sale of the stocks of the company -when they should be salable, and to advance such amount on them as the future necessities of the company were likely to require.

It was during this season of monetary embarrassment that the lioard determined to oifer the contractors and proprietors of lands, in payment for their work, and the right of way, certificates, authorizing the transfer at par of the six per cent, stock of the city of Baltimore, whenever presented in sums of $100 or upwards.

This proposition vs'as promptly responded to by the community at large, as well as the contractors and other creditors of the con^pany, who, during the year ending on the 30th of September, 1810, received in payment of the liabilities of the companj', stock to the amount of $515,000. The city was enabled, by this master-stroke of policy, to comply with her engagements to the company, without any loss or sacrifice ; the credit of her public securities was preserved unimpaired, and this important work, so essential to her trade and prosperity, was enabled to push on with energy towards its completion to Cumberland.

; The receipts of the Main Stem to Harper's Feny, and the Washington Branch, during the year ending October 1, 18il, amounted to $135,458 8C, being nearly three and one-half per cent, upon tlie original capital of $4,000,000, which those sections of the road had cost.

During the monetary difliiculties of 1839-40, whilst, through the energy of President McLane and his able Board of Directors, this groat work was pushed forward by tlie apiiropriatiou of city stock, at par, most of the other principal works of internal improvement throughout the country were partially or altogether suspended. The company was thus enabled to promptly meet all its engagements, while its credit and resources remained unimpaired, and ample to discharge its obligations.

On the 1st of June, 1842, the road was opened for travel and transportation from liarjjer's Ferry to a point opposite the town of Hancock, a distance of forty-one and a half miles, and soon began to show a large increase in business and receipts.

The work on the balance of the road to Cumberland was, in the mean time, pushed on with energy, and on the 5th of November, 1842, a proud day for the city and State, this great central puiut of their labors was reached.

[For an account of tlie difficulties overcome in tliis portion of tlio work, the reader is referred to the description of the line, to be found in the pages succeeding this historical sketch.]

The road being now finished to Cumberland, the Board considered that they had surmounted the most formidable impediments to its further progress, and that tlie various interests Avhich had been previously hostile or lukewarm, would thereafter become auxiliary to its advancement. It was believed that beyond Cumberland it would become the primary work of Maryland, and of "Western Virginia and Pennsylvania : but these expectations Avere again subject to disappointment, with delay and procrastination, and almost a total suspension of operations for several years. The Board looked forward to the early consunnnation of tlieir hopes, and in the annual report for tiie year 1843» after urging most eloquently and ably the duty of the city and State in the matter, thus predicted results that may now be confidently anticipated :

" When Baltimore can communicate with St. Louis and New Orleans with equal certainty, at a shorter distance, and at a less cost than attend the intercourse from the same points with Philadelphia, New York, and Boston, she may then, and not before, hope successfully to contend with those cities for the Westein trade. Then, and not before, the capital and enterprise now inactive, or which may have sought more favored points, may be expected to return ; then her wharves may be lined with foreign ships and steamers, and she may become the mart of an extensive domestic and foreign trade."

The charter of the company, both in Maryland and Virginia, by its original terms was perpetual ; but, without additional legislation, the Board had no authority after the 4th of July, 1843, to occupy any greater extent of the territory of either State for tlio extension of the road. The legislature of Maryland promptly allowed a further period of twenty years, but that of Virginia adjourned witliont taking any action towards removing the obstacle. In the mean time the Board were constrained to limit their measures for the construction of the road, to further reconnaissances of the country west of Cumberland through the State of Virginia, in the well-founded belief that in that direction, should it become advisable to seek it, a better and cheaper route to the Ohio River might be obtained; looking forward with confidence to more auspicious legislation in both States the ensuing winter.

In the month of January, 1844, the Board were officially informed by the President of the Maryland and New York Iron and Coal Company, that having procured the requisite funds to construct a railway from the mines to Cumberland, they were anxious to proceed with tho work, if tlie charges for the transportation of iron and coal from the mines to Baltimore could be fixed at such rates as would warrant them in adopting the Baltimore and Ohio Railroad for the transportation of their products. The same officer subsequently proposed a contract for that purpose, to continue for five years after the completion of their road, to furnish a freight of coal, pig iron, bar iron, fire-bricks, &c., iu quantities of 175 tons per day, for tliree liundred days in the year. The proposition was finally accepted by the Board, and the rate of one cent and one-third of a cent per ton per mile fixed as the freight. This was the commencement of the semi-bituminous coal trade, whicli has now swelled to a demand for means of transportation to the extent of 3,000 tons per day.

During the winter of 1843, another application was made to the legislature of Virginia to grant further time for the extension of the road through that State, within the limits of the original charter, which allowed the company to strike the Ohio at a point not lower than the mouth of the Little Kanawha. The application, however, encountered an opposition altogether unexpected from the authorities. A bill was finally reported, granting the right of way between the desired limits, but encumbered with so many embarrassing conditions, that the friends of the road in the legislature refused to accept it.

President McLane again visited Europe in connection Avith the financial operations of the company during the year 1844, when Samuel Jones, Jr., Esq., was chosen President pro tern. It was during this period tliat Ross Winans' heavy engines, then of twenty-two tons' Aveight, built for the coal trade, Avere first put on the road, and prcved themselves of great value by using Cumberland coal as fuel instead of wood. The late-t of these machines Aveigh some thirty-two tons, without the tender.

At the close of the year 1845, the difficulty with the legislature of Virginia Avith regard to the right of Avay through that State still continued, and prevented the commencement of the road Avest of Cumberland, the law passed at the previous session, on account of its onerous conditions, having been rejected by the stockholders. An efl:brt Avas then made by the citizens of Western Pennsylvania to procure from the legiylatnre of that State a law authorizing the company to extend its Avorks to the city of Pittsburg. This movement ultimately resulted in the granting of the Oonnellsville Road charter, but not until the year 1846, when the legislature of Virginia someAvhat modified the objective policy they had pursued, and finally passed a bill, compelling

More Delays Right Of Way

President McLane returned from Europe in October, 184(5, and again resumed his post. In tlie mean time the annual reports show a steady increase in the transportation, hotli of passengers and freight, and $000,000 having been subscribed by the Baltimore and Ohio Kailroad Company to the capital stock of the Pittsburg and ConuoUsville Ivoad, that company Avas preparing to prosecute its work to the Maryland State line with a great deal of energy. The cliarter of the Connellsville Road to open a way to the Maryland line met Avith great opposition from Philadelphia, and was passed Avithout tlie delegates from that city fully understanding that its object Avasthus to aftbrd a connection betAveen Pittsburg and Baltimore, - an opposition that had already lirevented a satisfactory extension of the charter of the Baltimore road to connect Avitli Pittsburg, by embarrassing its provisions, and making it dependent for its vitality upon the failure on the part of the citizens of Philadelphia to subscribe the sum of $3,000,000 to a company incorporated at the same session to construct a road from that city to Pittsburg.

At a meeting of the Stockholders held on the 5th of April, 1847, relative to a conference had Avith the Pittsburg and Connellsville Company, President McLane read a communication over his own signature, stating that the Connellsville Company had so far changed its vieAvsj that it not only refused to accept any further subscription from the Baltimore Company, but declined to treat Avith them unless they Avould, before a designated day, consent to assume the responsibility of completing the entire connection with Pittsburg by their own undivided energies, upon such terms and by such route as prescribed; and that, too, Avithout any expectation of receiving assistance from Pittsburg. The route thus prescribed, called the " Northern Eoute," the President proceeded to shoAV, although the cheapest I'oute to reach Pittsburg, Avould be the dearest route to Baltimore, in view of the continuation of its road to a more southern point on the Ohio River ; and that it might be in fact the design of this condition to obstruct, if not defeat the purpose of Baltimore ever going further south on the Ohio, - in short, that their conditions meant nothing more nor less than that, unless Baltimore, ineftect, relinquished and abandoned forever its purpose of ultimately going to a more southern point on the Ohio, it should not form a connection Avith Pittsburg at all. This Avas the alternative submitted to the company, and as a n)atter of course it Avas promptly and decidedly rejected, although attliaftime a connection Avith Pitts-

In tiie early part of the ensuing year, 1S47, the legish^ture of Virginia renewed the grant of the right of way tlirough that State for a period of twelve years, upon condition that the road shall be extended to the city of Wheeling witliout toucliing the Ohio Eirer at a ^wint lotcer down than the mouth of Fish Crecl\ and according to the agreement with that city, the option of extending the road by the latter point wrts absolute. By accepting this Virginia law, and confirming the agreement of the city of Wheeling, the Stockholders at that time considered that they had not only consulted the interests of the several companies engaged in making the improvement on the Southern and Central lines of Ohio, but insured the connection of both with their road.

Ten years were thus spent by the company, throngh the impracticable legislation of Virginia and Pennsylvania, in seeking the right to extend the road to the Ohio Eiver. On the 1st of July, 1847, Benjamin n. Latrobe, the chief engineer of the road, acting also as General Sui)erintendent, under instructions from the Board, proceeded with three competent corps of engineers to locate the line of tlie road as far westward as the Maryland and AHrginia State line, on the southern route towards the Ohio, - tlie first coi'ps were engaged between Cumberland and Westernport opposite Piedmont, twenty-seven miles up the valley of the North Branch - the second in the location between Westernport and Backbone or Main Summit - and the third upon the easy and picturesque part of the route lying westward from tlie Summit, through tlie Glades, for a distance of fifteen miles to the State line. The last party, having finished their labors, crossed into Virginia and proceeded to the head of Snowy Creek, whence the descent to the Valley of the Cheat River commences. At the close of the season, sixty-five miles of the route from Cumberland West was fully prepared for contract.

The last report of Mr. McLane for the year 1848, details at length the pecuniary difficulties of the company, the necessity for a still further increase of the motive power of the road to the amount of $'240,848, rendering it impossible that a dividend in money could be paid during that year on the capital stock. The Board had also deemed it necessary to proceed with the reconstruction of the old, imperfect, and worn-out road: to change the original and defective location of the track east of the Monocacy, and to extend a branch road to Locust Point, on the south side of the Basin in Baltimore, on which tlie transportation, not intended for distribution in the city, miglit bo done by steam to the waters' edge, and much of the horse j)o\ver in the streets be saved, and other serious inconveniences avoided. This work was duly carried out, and was tlie germ of the extensive shipping wharves and warehouses chistered there, and whicli afford such admirable facilities for the prompt and cheap transhipment of freight between the cars and tiie boats.

The eliief engineer, in the mean time, had continued constantly in the field locating the road west of Cumberland. Tlie ditBculties of the entire country, as far as the Cheat and Tygart Valley Rivers, induced the Board to call in two consulting engineers to confer with Mr. Latrobe upon the location of this important section of the road. For this purpose the services of Jonathan Knight, of Pennsylvania, and John Child, of Massachusetts, were secured, and in the month of June, 18-±8, the Board of Engineers, thus constituted, examined the country described, with care, and decided upon all the lines it would be expedient to trace, in order to leave no room for question that the entire ground had been investigated with the utmost caution. The engineers were-fully satisfied that the construction of the road across this rugged country was fully practicable, with grades perfectly within the useful available power of the locomotive engine.

Chapter

In October, 1848, sliortly after the presentation of the t\\-entysecond annual report of the President and Board of Directors, Mr. Mc- Lane resigned his [losition, as President of the road, over which he liad presided for eleven years, and Thomas Swann, Esq., for several montlis previous one of the most active, energetic, and able of the Board of Directors, was immediately chosen his successor, Avith a unanimity that clearly evinced the high estimation in which he was held by his associates in the Board. The announcement of his appointment also gave general satisfaction to the city and State authorities, as well as to those of his fellow-citizens Avho were familiar with his character and the previous services which he had rendered the company'.

The affairs of the company had reached another crisis. The privilege of forming a connection with the Ohio Kiver had been placed at their disposal by the act of 1847, and the agreement with the city of Wheeling: and the time had arrived for exercising an energy which faces embarrassments and trials, with a determination to conquer, despite the clouds of adversity that threaten momentarily to overwlielm. The Board fully appreciated the responsibility resting upon them, and time has shown that, in the selection of a successor to Mr. McLane, they acted judiciously.

Among the records of the company, the first mention of the services of Mr. Swann is during the year 1847, Avhen, at the instance of Mr. McT-ane, he proceeded to Richmond to procure such terms as would be the most acceptable in the matter of the right of way to Wheel- ing, then pending in the legislature of Virginia. lie tliere labored Avith that indomitable perseverance -which lias since distingnished iiini as President of the company, greatly contributing, by his ability and his sound discretion, towards a restoration of good feeling between the parties to the ten years' controversy.

Early in the year 18i8, a vacancy occurring in the Board, Mr. Swann was unanimously elected a Director. He came in as a friend of the administration of Mr. McLane, and continued to yield to him a cordial support up to the period of his resignation. From the time of his appointment Mr, Swann became identified with every important measure of the Board, and seems to have been called upon bj- the President in every delicate emergency that required more than ordinary energy and ability to encounter and overcome. Tiie series of communications published during the year 184-8, in the Baltimore Patriot, over the signature of '- A large Stockiiolder," were understood to be from his pen, and attracted a large share of attention at that time.

Sliortly after the passage by the Virginia legislature of the law of J 847, Mr. Swann visited the city of Wheeling in company with President McLane, T. Parkin Scott, Samuel Iloft'man, Joseph W. Patterson, and -James Swann, to make arrangements with the authorities of that city prior to a recommencement of the road west of Cumberland. The agreement effected with tlie city, as a consequence of tliis visit in July, 1847, proved entirely satisfactory, and was afterwards fidly endorsed by the stockholders.

On the 4th of January, 1848, some months prior to his election to the presidency of the company, Mr. Swann, as cjiairman of a special committee of Directors, charged Avith the duty of co-operating with President McLane in devising means for the prosecution of the road west, published an able address to the citizens of Baltimore, announcing that the comi)any, after so many years of fruitless toil, had at length triumphed over every obstacle, and that tiie city had at last open to her embrace an unobstructed line of communication with the resources of the great "West, by a route well adapted to the important ends to which her efforts had been directed. The company also, in accepting the route ottered by Virginia, had every assurance that it was within the reach of a connection with tlie railroad in course of construction through central Oiiio, and that it would be acceptable to a line connecting with Cincinnati, through the southern division of the State, by Marietta, Athens, and Chiljicothe. The address of Mr. Swann removed all the doubts and fears of those who regarded the undertaking as too stupendous for the means and resources of the company.

Pennsylvania was pushing on her Central Road to Pittsburg; and for Baltimore then to stop at Cumberland, he urged, would bring ruin, wide-spread ruin, upon the city, froui which no power on earth would thereafter be adequate to redeem her. Her doom Avould be sealed - her working classes would be struck down in the midst of advantages which nature had thrown in her way, and which she would sufler others to come in and appropriate for themselves.

The committee of which Mr. Swann Avas chairman, consisted of John Hopkins, Samuel Hoffman, Jacob G. Davies, T. Parkin Scott, George Brown, and William Cooke; and their appeal to the citizens of Balfimore met Avith a prompt and cordial response from all the varied interests of the city and State.

A letter was also addressed by President McLane to this committee, urging that the crisis had arrived when it became the imperative duty of the Directors and Stockholders of the company, promptly to adopt all the measures in their power to finish their enterprise without delay, " and witliout counting the inconvenience of some present privation, to invoke to tlieir aid their utmost resources to accomplish their object."

On assuming the position of President of the company, in the fall of 184:8, Mr. Swann briefly addressed the Board, approi;riately acknowledging the honor that bad been done him, and pledged his undivided attention to the duties that would devolve upon him ; - a pledge that he has most religiously kept. From that period down to the opening of the road, he is known to have been engaged almost without the intermission of a day, disregarding all private affivirs, and every other claim upon his time, in his efforts to secure to the city of Baltimore the consunnnaLion of its long-deferred hopes, and the benefit of this great highwa}^ to the Western waters.

At the period of Mr. Swann's election, we find, on consulting tlie sales at the Baltimore stock board, that the shares of the Baltimore and Ohio Railroad had fallen to twenty-eight cents in the dollar ; and its bonds, it was believed, could not be sold to any large amount. Mr. Swann's first effort, in this pecuniary condition of the company, appears to have been, to form an indissoluble connection with some strong and leading financial house abroad, which could afford substantial aid in the trials and emergencies that he plainly foresaw would have to be encountered in the line of duty he had marked out for himself, and in which he had every reason to believe he would be fully sustained by the eidightened Board of Directors over whom he had been called to preside.

Energetic Action Confidence Restored

Tho sterling bonds de[)Osited by Mr. McLano in the hands of Messrs. Baring et Brothers, still remained there, and the attention of Mr. Swann was attracted to that house as likely to afford the means of aiding in the resuscitation of the credit of his State. Mr. Peabody of London, formerly a citizen of Baltimore - with Avhom he also immediately opened a correspondence on the subject, - referred the application to the Messrs. Baring, deeming that to be his best mode of meeting tho views of the company. The State of Maryland had been among the suspended States, and its credit abroad had greatly suffered in consequence; so that, without the aid of a strong and friendly moneyed connection, it Avould have been impossible to make available, for the completion of the road, any portion of her sterling bonds. This correspondence, comprising nearly a volume of letters, discusses at great length, and with marked abilit}", the financial position of the State of Maryland, and proved so .-satisfactory and convincing, that it closed with a sale of £200,000 of the five per cent, bonds of the State to the Messrs. Baring.

The growth of the city of Baltimore during the two years in which tlie company had been maturing their plans to prosecute their work to completion, had not been equalled at any former period of her history ; and it was universally admitted that her subscription of $3,500,000, had been more than returned to her in the enhanced value of her real estate, to say nothing of the influx of population, which increased activity in trade and the prospect of an early connection with the West liad brought within her limits.

Early in 1849, Mr. Swann in an address to the Board of Directors, indicated the purpose of the Company to press on with the work, and to compass tiie whole^ instead of a j^iar^ of the route between Cumberland and Wheeling, as had been originally proposed. The bold and confident spirit of this address attracted notice throughout the country, and revived the drooping spirits of the friends of the work. For years previous the subject had been one of engrossing interest, and the public mind had become feverish under the delay which had attended the efforts of the company to secure a charter under which they could feel justified in proceeding with the road. After describing tliis position of the affairs of the company, Mr. Swann urged the great importance of prompt action in pressing the work to com[)letion, and depicted in startling colors the dangers to be apprehended from procrastination when rival interests were actively at work.

grave deliberation in a coininimity already so heavily burthened by her liberal contributions to works of internal improvements, from wliicli but partial returns had been received. But these disappointments, he urged, should not be permitted to involve the city in still more formidable sacritices. The large amount of capital already embarked in the finished road from Baltimore to Cumberland, would but faintly express the loss which would be entailed upon the comnmnity by a failure to carry out the original plan of the projectors of the enterprise. Tliis address concludes as follows :

" Tlie completion of n stupeiiclous work, hiiicling together two grand extremes of our Union, and promising so largely to the future advancement of the city of Kaltimore, in every department of her industrial pursuits, and indirectly to the whole State of Maryland, might well excite the ambition of all classes and interests, - having an eye to ovir common welfare and prosperity. Under whatever auspices it may be pressed to completion, it will ever stand as an enduring monument of the wisdom and foresight of its early projectors, and an honor to the State of Maryland, as well as to those enterprising citizens by whose capital and public spirit it may be brought to a successful termination."

Immediately on the closing of the delivery of this address to the Board, Mr. George Brown, one of the venerable founders of the road, is said to have arisen under great excitement, and moved the following resolution :

" Eesolved, That the Chief Engineer he directed to proceed to arrange to put the iDhole line to the Ohio River under contract as speedil]) as practical)! ey

This spirited resolution was instantly and unanimously^ adopted, and the decided and confident manner in which Mr. Brown seconded t)ie recommendations of the President, having its eftect both in ths lioard and among the connnunity at large.

The policy of the company being now fairly established, no effort was spared to place the road west of Cumberland under contract, and to press it forward Avith the least practicable delay. At the close of the year 1850, \^o less than 1G5 miles of the road was in various stages of advancement, and in the spring of 1851, the laying of the rails was commenced. Whilst in this state of progress Mr. Swann continued to invoke the encouraging aid, not only of Baltimore, but of every interest identified with tlie common prosperity of the State at large. The Board had entered ui)on the discharge of their responsible duties, not without a full ai)preciation of the difficulties incident to all similar works ; nor could they expect to realize, without a cordial and united support, the animating prospects with which, for the twenty years preceding, the work had continued to be cherished by the city, through every species of disappointment, as her only hope of protection against the dangerous rivah'ics by wliicli she was surrounded.

In January, 1850, a ditTerence of opinion having arisen between the Company and the city of Wlieeling, relative to the route by which the road should enter that city, President Swann Avas compelled to visit Richmond to endeavor to counteract an application which was proposed to be made by Wheeling to the Legislature to arrest the progress of the work. At a general meeting of the Stockholders, held ou the 1st of May, 1851, the President explained the whole controversy, in an address of great length, and recommended that the law, obtained from the Legislature, which compelled the adoption of the Grave Creek route be promptly accepted, rather than submit to further delay.

The first division of the road west of Cumberland, to Piedmont, a distance of twenty-eight miles, was opened early in June, 1851, with api)ropriate ceremonies, the Mayor and City Council of Baltimore, with a large number of citizens, being present by invitation of the Company.

In the fall of 1851, the disbursements of the road were over $200,000 per month, for construction. After a period of ease and abundance, the Board found themselves, almost without warning, in the midst of a financial crisis, with a family of more than live thousand laborers and one thousand two hundred horses to be provided for, while their treasury was rapidly growing weaker, and with no means of replenishing it sufficiently for the satisfaction of the overwhelming demands made upon it. The crisis demanded that no timid or temporizing policy should mark the proceedings of the Board in the endeavor to place themselves in a position to meet any contingency which was likely to arise, and the great financial abilities of Mr. Swann were again taxed to their utmost to prevent such a catastrophe as the suspension of operations which seemed to threaten on the unfinished road. The commercial existence of the city of Baltimore depended on its prompt and successful prosecution, and to have fiiltered at tliis critical juncture, at any hazard - however remote - of endangering tlie great interests intrusted to their charge, would have been to have deliberately invited the just censure of those to whom the President and Board held themselves responsible. In the views of Mr. Swann, the Board concurred, and did not hesitate for a moment as to the proper policy to be pursued. After repeated efforts, at home and abroad, to bring their bonds to the favorable notice of capitalists, they finally succeeded, as a last resort, in negotiating a sale of the whole amount applicable to construction, at a limit of eighty per cent., deeming this sacrifice of minor importance to the suspension of operations on the road.

In reviewing the financial policy of the Company, at this day, it is confidently believed that there is no measure whicli has contributed more to its substantial and lasting benefit than the sale of these coupon bonds at the time and under the circumstances which attended the transaction. It Avas in fact the turning point in the progress and success of the road. The remaining $700,000 was subsequently sold at eighty-seven per cent., - the discount to wliich the Company was exposed being considered to represent but faintly the more ruinous sacrifice to which they would have been subjected by the delay of a single season in the opening of their road - to say nothing of the risk of a financial crisis, a total suspension of their work, and the general -withdrawal of the public confidence, consequent upon the postponement of the prospect which, for so long a period, had sustained the Board aud the community in their untiring efforts to open a communication with the resources of the great West.

To give some idea of the large financial operations of the Company, and the troubles and anxieties devolving on the President and Board in the extension of the road beyond Cumberland, during the twenty-four months closing with the first of October, 1852, it is only necessary to refer to the exhibit of the Treasurer, which shows tiiat the amount expended during that time, for the construction of the road west of Cumberland, was the enormous sum of seven millions two hundred and seventTj'One thousand seven hundred, and thirty-tioo dollars and fifty-one cents. When to this it is recollected that Mr. Swann entered upon his duties with a debt of more than $250,000 hanging over the Company, the result furnishes the best comment upon the policy which was adopted and steadily pursued.

On the 22d day of June, 1852, the road was formally opened to the town of Fairmont on the Monongahela River, seventy-one miles east of "Wheeling, from which time the trains ran to that point Avith a re'^ularity scarcely surpassed on any part of the old road between Baltimore and Cumberland. A splendid banquet was given at Fairmont to about three hundred guests of the Company, at which sentiments and speeches, indicative of the joyousness of the occasion, abounded. In reply to several complinientary sentiments to President Swann, which were received with general enthusiasm, he stated that while deeply impressed with tlie flattering manner in wliich his name had been introduced, he thought that too much credit had been attributed to him. He had done no more than his duty as a citizen of Baltimore; and the credit of the success which had attended the etYorts of tlie Board he had tlie honor to represent, was due more to tlie able and public-spirited men wlio had been associated witli him, in directing the aftairs of the great corporation over which he presided, than to any efforts of his own. Mr. Swann alluded t(j the many "tiglit places" in which they had found themselves, at home and abroad, in the Legislature of Virginia and in his own State, among rival and conflicting interests - from all the troubles of whicli they had now emerged, formidable as they were - and tlius eloquently expressed his feelings on the anticipated consummation of the enterprise :

" These embarrassments hare at no time taken me by surprise ; they are the concomitants of a bold and mighty undertaking ; they are incident to all great works like the present ; and I deem it no more tlian jnst to myself to say here, in the presence of this distinguished company, that liad tliey been ten times more formidable than they have thus far proved, I would rather have encountered the risk of verifyinj); the predictions which have been so confidently hazarded - of burying myself in the gorges of the mountains with whicli we have triumphantly grappled - with the ruins of this splendid work as tlie only monument to mark my connection with the public affairs of your State and city, than I would have relaxed in one single efifort to give to the State of jMaryland the benefits of this great national highway. I say, gentlemen, that I would have gloried in the 7-uins of this stupendous work, as a prouder inheritance to those who come after me, than all the reputation, and all the credit, and all the honor that could have been heaped upon those who would have stood in the way of its successful prosecution.

" Gentlemen, a lew months now will bring you to a close of your labors, and it will then be seen whose voice has been prophetic. I have indulged in no extravagant speculations. I may not be connected with this work when the matured fruits of your labors begin to flow in upon you. I trust, o;entlemen, it will have passed into abler and more competent hands. But it will always be a source of pride to me - greater than the applause of Senates - more to be coveted than the renown of the battle-field, that my humble name should have been connected with an enterprise to which the progress of internal improvements in this country presents no parallel, and which is destined to dispense its blessings to the present as well as future generations, not only in the State of Marylaud, but throughout the Union."

The opening to Fairmont was the accomplishment of what for some years previous to the administration of Mr. Swann, was regarded as the limit of the ability of the Company, (without some intermission in its labors,) towards completing its coimection with the Ohio River. It was here that the Company intended to take a breathing spell. It was deemed glory enough for one effort to have formed a connection with the Monongahela, without looking to the more cheering ])rospect beyond it. Thus it was that the amu)unceinent of the determination of the Board to put the whole line under contract was considered by many to have been little less than madness. But the Company desired no breathing spell when competition was at their door. They had tlius far pressed on in the face of the most formidable embarrassments, - they had taken no step backward.

In the trip to Fairmont, the highest ranges of the Alleghaniea were crossed, and those who had proclaimed the impracticability of working a grade of one hundred and sixteen feet to the mile, became satisfied that their apprehensions were groundless, and that the iron horse could accomplish still greater imaginary impracticabilities than that. The whole train on account of a slight accident in the Kingwood Tunnel, was conveyed over the mountain on a grade of over five hundred feet to the mile, or one foot to nine, showing that even at such an elevation, there were very few things impracticable to science, art, and the power of steam.

Mr. Swann, as early as 1851, promised to stand with his guests of the city of Baltimore and the States of Virginia and Maryland on the banks of the Oiiio at Wheeling on the 1st of January, 1853, and on that day the first train passed through, fulfilling the prediction almost literally. The opening celebration took place however not until the tenth and twelfth of the same month - it having been postponed for a few days in order to allow time for the people of Wheeling to prepare for the reception of the five hundred guests that received her hospitalities on the auspicious occasion. Since that time passengers have been daily carried from the Chesapeake to the Ohio, and from tlie Ohio to the Chesapeake, in the brief space of sixteen hours, and the road has been put in perfect condition for carrying the immense stock of freight continually accumulating on the Ohio for transportation across the Alleghanies. The eloquent closing remarks of Mr. Swann's annual report, announcing the consummation of the great undertaking, are worthy of general perusal. They are as follows:

" It is now twenty-six years since the Baltimore and Ohio Railroad Company made tlieir first annual report to the enterprising stockholders, by whose capital and public spirit this Board was called into being. Of those who stood prominent in its early organization, few have survived the delay which has attended the progress of this road, or will be present to rejoice with us in the work of final completion. In the animating prospects of the future, it becomes us, however, not to forget wliat is due to those who have borne a part in the conception of the grand idea which it embodies. History will do justice to the past as well as the present.

" After years of delay, surrounded by embarrassments, and staggering under the vastness of the undertaking - with a credit almost exhausted - its few remainiu'T friends scattered and disheartened - a comniunity over-taxed - and an opposition rendered formidaLle by the honesty of the convictions under which they acted - this great work entered upon its extension from Cumberhind to the city of "VVheehng, a distance of more than two hundred miles. Throufih every vicissitiade of climate, obstn;cted by interminable rocks, or opposed by a succession of mountain barriers, altoa;ether -(v-ithout a parallel in the progress of similar enterprises, by day and by night, it has pressed forward in such a march as human labor is seldom called to encounter, sustained only by that determined spirit which so strongly marks the character of the age in we live ; until it is now within reach of the goal for which it has been so long striving.

" To this noble city what a prospect it discloses ! In the midst of a rivalry stimulated by the importance and magnitude of the results at issue, her mighty destiny is already foreshadowed. The rich prize is within her grasp. The union of the Ohio and the Chesapeake, by the favorite highway which nature has indicated, is no longer among the probabilities of the future ; and the city of Baltimore, so long retarded in her progress, may yet realize the glowing anticipations of that illustrious man - the first to foreshadow the results of so grand an undertaking - whose imposing column as it towers in her midst, when it reflects the parting sun as it goes down upon the empire of Western commerce, will look with renewed pride upon the enterprise and public spii'it of a people whose indomitable courage has achieved the lasting glory of binding together these remote extremes of our Union."

The names of the Board of Directors, under whose auspices the Baltimore and Ohio Railroad was completed, (among whom it will be observed that George Beown is the only director who, in that capacity, saw " the beginning and the end,") are as follows :

Representing The State Of Maryland Eepresenting The City Of Baltimore

The cost of constructing the road from Cumberland to Wheeling is stated by the Chief Engineer to have been $0,631,721, which makes the wliole first cost for construction from Baltimore to Wheeling, including the Locust Point Branch and Camden Station, up to March, 1853, $15,628,903 24, as follows:

The above is a statement of the cost of the construction of the road only of the main stem, independent of the Washington Brancb and tlie Northwestern Virginia Railroad, the tunnels, second track, the cost of stations, locomotives, oars, &c. The whole amount expended u[)on the work up to October. 1857. has been $30,000,000, and about one million more will probably be needed to perfect its plans, thus llad the enterprising men who originated this great undertaking imagined it would have cost any thing approaching this vast amount, it can scarcely be supposed that they would have commenced it at all. Even if their energies had not been checked by sucli an array of figures, they would hardly have been able to raise funds enough on such a stock to have carried the road beyond EUicott's Mills. On reference to the proceedings of the meeting of citizens, held on the 12th of February, 1827, at which it was resolved to apply to the Legislature for a charter to construct the road, we find the views entertained at that time by its originators as to its cost, distance, tolls, time of transit, «&c., Stated as follows:

Actual Results Compared With First Estimates

Tt will thus be seen that while their estimate of the probable first cost of constructing tlie road is less than one-third of its reality, the estimate of annual income is scarcely one-sixth of the actual revenue for 1857. They also fell nearly 100 miles sliort in regard to distance. Tiiesc estimates were made, however, before tlie route had been surveyed, at a period when railroads were not in existence, and therefore without any data upon which to base tliem. Tlieir estimate of the time required to pass from Baltimore to the Oiiio was also nearly four-fold greater than the present running time. To the few survivors of that noble band of citizens, tlie fact that their estimates have mainly proved more favorable than they anticipated, must be as gratifying to them as their witnessing of the completion of the great enterprise according to their original design, - " to the waters of the Ohio."

x'ne road being now built to its terminus, President Swann determined to obtain full relief from the cares devolving upon him, and at the April session of the Board, in 1853, he resigned his position, and went abroad upon a tour of Europe. He retired with the respect of the community of Baltimore, and of all who had taken an interest in the great enterprise which his ability and zeal had done so much to complete. ^Villiam G. Harrison, an intelligent and experienced Baltimore merchant of approved integrity, was unanimously chosen as Mr. Swaun's successor, and was twice re-elected to tlie Presidency at the annual meetings of the Company, creditably holding the position until November; 1855, when he was succeeded by tlie present incumbent, Chauncy Brooks, who was recently re-elected for the third year, expiring October, 1858.

Tt is proper to state that the foregoing history of the Baltimore and Ohio liailroad, from the date of its inception to its crowning trium^^h, at Wheeling, is derived from a volume publislied in 1853, by "a citizen of Baltimore." The tacts are chiefly derived from that book, although the text has been altered in some parts in adapting them to the present work. Interesting details of this road's history from its opening to "Wiieeling down to the present time, derived from official sources, will be found in the next chapter.

Chapter Vi

New Station at Baltimore. - The anticipated expansion of tlie operations of the road, upon its completion to the Ohio river, required extensive and varied provisions in the way of equipment and other focilities, among which was larger city station accommodation at Baltimore than the old Pratt street premises afforded. President Swann, in his annual report for 1852, explains the action of the Company in securing this object. Although the Company's premises at Mount Clare Station were, even then, very extensive, it was found impossible to furnish adequate accommodation there without interference with the growing wants of the machinery department, whose numerous buildings, with the tracks incidental thereto, now absorb the entire twenty acres of ground therein embraced. Besides, its remoteness as a place of delivery prevented its use, and required the transfer of the city business to some more convenient and central location.

Accordingly a purchase was made of three entire squares of ground fronting on Camden street, but one block from Pratt, between Eutaw and Howard streets, with a breadth of 330 feet, and a depth of more than 1,100 feet between Camden and Lee streets, including the beds of Conway and Barre. This ])urchase was received with general favor, and comported admirably with the vastncss of the enterprise, whose accunmlatcd treasures the new station was destined to receive. Every facility was afforded by tlie corporate authorities of Baltimore in establishing the station, including tlie allowance of the privilege of locomotive steam power by such approaches as were convenient and aclvaiifii!J:eous. The iiiiprovenicnts on tins lot consisted at first only of sucli tracks and buildings as ai)peared indispensable for the opening of the road. These ouibraced a central line of broad sheds and platforms for both passengers and freiglits, from Lee street np to Conway, some 750 feet in length. Two freight sheds and platforms on Entaw street, also two blocks long, were afterwards added, with a substantial engine house, turn-table, water tanks, sundry offices, &c. These sheds, Avhich yet remain, though of permanent carpentry, roofed with iron, and well tinished, were designed as but temporary structures to give place to those belonging to a more extended plan.

The plan of the buildings which is now being gradually carried out, embodies features of an exceedingly striking architectural fitness and beauty. The keystone of the first range was finished during the present year of 1857, being the centre of the main building on Camden street, in which the general ofl3cers of tlie com]iany are now located. The cut presented in these pages affords a view of this structure, with its wings, as it is intended to appear when finished.

A New Station at Wueei.ing. - Similar provision was made for a city station at Wheeling, where ample buildings of a permanent character for the heaviest freighting and passenger business have been since erected, immediately on the bank of the river, and contiguous to the chief hotels and the business centre of the place.

Equipment. - At the commencement of the year 1852, when the extension of the road from Cumberland to Wheeling had only penetrated the Alleghanies, provision was made for procuring the ecpiipment necessary to accommodate the probable trade npon its completion to the Ohio river.

At that period the equipment may be stated as follows : - Locomotives of all kinds, 85, of which 41 only were of the first class; passenger cars of all kinds, 70 ; tonnage cars of all kinds, 1,485.

The estimate required the addition of 82 locomotives, 42 passenger, and 1,.jOO tonnage cars, which would increase the equipment to 1G7 locomotives, 118 ])assenger, and 2,785 tonnage cars.

The estimated revenue to be earned by the machinery thus proposed, was $4,092,000, of which $900,000 was from passengers, and $:3, 192,000 from f-eights.

weitrliing u[)on an average 30 tons each, without, their tenders. Number of Passenger Cars, 124; number of Tonnage Cars of all kinds, 3,668, making a grand total of more than 4,000 engines and cars, constituting the largest equijnnent of any railway company in the United States^ and fully adequate to the production of an annual revenue of more than $6,000,000; say $1,000,000 from passengers, and the remainder from tonnage.

For the fiscal year of 1853 (the roud being operated in its entire length for but six months of the year, from April 1st to October 1st), the revenue was as follows : -

In coiUiection with the working oi)erations of the road during this period, we quote tlie Annual Report of "William Parker, the General Superintendent, Avho says: -

"The operations of the Transportation department have been attended with very serious embarrassments during tlie year. Not only was a vast thoroughfare to be opened through a comparative wilderness, with unfinisbed graduation and bridges, and without buildings for the repair and erection of machinery, adequate sidings for trains, or any of the comforts of life for oiu* officers and hands ; but an organization was to be suddenly and vastly increased, in face of the demand for railroad skill and experience, which, on the most ibrtunately situated of tlie railro:ids of oiu- country, has been greatly in advance of the supply. Few can estimate the formidable character of this dirticulty, wliicli may be safely said to Lave affected every movement we have made, bnwevcr small.

-' Tlic Through-business to and from the West has been meagre, in comparison with what our more Northern railroad lines have done, with Western connections better matured, and independent of 'high' or 'low' water in the Ohio river ; connections which mc hope soon to match, by railroad to Zanesville, Columbus, etc , westward, and to Cleveland north, and thence to Chicago north we.'itward, - not to dwell upon the line to Parkersburg, which will lead the way, immediately during good water, and early by land, in the shortest line from the seaboard to Cincinnati and St. Louis."

Being an increase of $1,612,189 63, of which $104,840 60 Was in passengers, and $1,507,343 03 in tonnage, - the proportion of par^senger revenue being but 15 per cent, of the aggregate, which is explained by Mr. Done, the Master of Transportation, iu his yearly' Report : -

" For many years the Western rivers formed the gi-eat avenues of travel as well as of trade. With no rivals -which could at all compete in the essential requisites of speed and comfort, the splendid steamers which plied upon those rivers enjoyed a monopoly of the passenger husiness during the whole season of navigation. The projection of the different railroad enterprises between the East and West looked only to reaching the Western waters at points accessible by steamers, scarcely' considering the possibility that they might be superseded by the older methods of conveyance, and the travel of the country diverted into other channels. At the time at which the Baltimore and Ohio railroad was opened to the Ohio river, however, a change had commenced, and was going on with a rapidity which surprised all, even the most practical.

" Tiie railroad lines leading from New York, had formed continuous connections with Cincinnati and other important cities in the West, and the Peraisylvania railroad enjoyed a similar advantage, through the Ohio and Pennsylvania and Cleveland and Pittsburg railroads. The business travel, always important as well for its influence as for its amount, attracted by the great saAnng of time, bad already been turned to these nortbern lines, leaving the great middle or national route over which it had for so many years continued to pass. The splendid steamers constructed by the enterprise of the citizens of Wheeling, known as the Union Line, which, no doubt, under more favorable circumstances, would have brought a large business to the road, were, within a few months after they had been placed on the line, stopped by low water, and from June, 185.''., to the present time, have not been able to run for three months continuously. Of course these vessels have, up to this time, not only proved uiiprofitablo to their owners, but have failed to bring any considerabli- number of passengers to the road. The two seasons during which our road has been in operation to the Ohio river, have been marked by an unusual continuance of low water - during the months of July, August, and September, 1854, amounting to a total suspension of navigation by even the smallest class of vessels."

" In view of the large and increasing trade, the Board has deemed it wise to maintain all parts of the road and ra:xchiner\' in the best and most effective condition, and has authorized and urged all necessary and judicious expenditures for this purpose. The liberal course thus adopted has resulted in large disbursements, viz , on the Main Stem :

" The true economy of these measures has been demonstrated, not merely by the remarkable exemption from casualties on the road, but by the facility and satisfaction with which this immense business has been transacted ; and, the Board takes pleasure in stating to the shareholders, as a further result of this system, that from recent inspection of the road and machinery, it is fully justified in saying that both are in excellent condition.

" The substitution of iron for wooden bridges is steadily progressing ; for details of which reference is requested to the able and lucid report of Mr. Wendal Bollman, master of road. The Board also refers with pleasure to his report regarding the progress of the work of arching tunnels and constructing second track.

" It is proper to state, that it has been the steadfast purpose of this Company, not only to maintain and jjerpetuate their road and machinery in good order, but to constantly improve all perishable portions, by substituting those of a more durable and costly character, as from time to time might be deemed necessary or expedient. Of this nature are the fine iron bridges over the JMonocacy, Patapsco, and elsewhere, instead of the original wooden structures which were beginning to decay, and the renewed or rebuilt engines and cars which are supplied with the latest improvements ; becoming, therefore, more effective and valuable in many cases than when new.

" The large amount of work in the Kingwood Tunnel perfected, and the near conipletion, in the most admirable and permanent manner, of that gigantic undertaking, is a source of congratulation. The assurance of the secure condition of the tunnels and bridges on the entire line, is also gratifymg.

" Under the order of the Board, adopted in May last, 9 miles of additional second track have been completed, and the graduation and arrangements for the remainder then ordered, (21 miles,) are progressing satisfactorily. The Company has now in use, in addition to 59 miles of sidings, 1004^ miles of second track."

"In addition to the improved economy of the management, and heavy increase in the tomiage lor the West, filling cars which have heretofore been returned empty, ihe large net result of the year's work, is attributable to the great natural advantage enjoyed by this road in its supply of coal for fuel on its own line at very low cost. The average rate paid by the Company for coal delivered on the road at the most convenient points, has been 80 cents per ton for the past year. Tims, whilst the Company has transported at sucli low rates as to secure an immense traffic, the great comparative advantage over its Northern rivals of fuel so cheap, has swelled the net profits to the highly satisfixctory amount stated.

" For upwards of 200 miles on the line of the Baltimore and Ohio road, inexhaustible supplies of bituminous coal exist, the comparative prospective advantage of which will be more fully appreciated when it is remembered that on the principal Northern and Eastern lines, the cost of wood, from the large consumption, creating the necessity annually of prociuring supplies from greater distances, will gradually increase."

" The attractions and advantages of the route for passengers are evidently becoming daily better understood and appreciated by the public, as the increased revenue from this source exceeds 10 per cent, compared with the. preceding year. Great regularity and safety of the trains characterize this department. With the facility of being the only great line from the West which can ticket passengers and check baggage through, from all points, to the National Metropolis ; and with the peculiar advantage of offering to merchants, and travellers for pleasure, the opportunity of visiting Baltimore, Philadelphia, ai:d New York, with the privilege of delaying in each city, at the lowest cost at which passage can be procured by any route to the latter cities, its passenger traffic may be expected to increase continuously and largely.

" The great value and importance of our connection with the Central Ohio road has during the past season been most thoroughly illustrated. Penetrating, at Columbus, the centre of the great network of railways, extending to the cities of Cincinnati, Louisville, St.-Louis, Chicago, and the vastly productive regions l^'ing between and beyond these points, this invaluable Hnk has poured continuously a large and increasing trade and travel over the Baltimore and Ohio lioad, and into the city of Baltimore, of which, without it, both to a lai-ge extent would have been deprived. Appreciating the importance of proper arrangements for crossing freight and passengers to and from the Central Ohio road, at the Ohio river, in all stages of water, the master of road has perfected an arrangement and equipment by which all passengers, and one thousand tons of freight per day, can be satisfactorily and advantageously transferred.

" The most diligent and energetic attention, under the policy approved by the Board, has been given by the transportation committee to the development and augmentation of all business that could be secured for our city; and the broad jHilicy of giving to Baltimore the advantages of her geographical location, in all arrangements for through freight from competing points, has produced an effect in the rapid increase of her business and prosperity altogether uisprecedented.

" When deemed necessary to promote the trade of the city, and enable our merchants to compete on atlvantageous terms with rival cities, liberal deductions in the tariil" have been nuide. In the leading staples, coflee, sugar, flour, grain, and the like - this course has been pursued with most satisfactory results.

" In every feature of policy, affecting the trade of the city, and the interests of the State, the Board has aimed to take enlarged and comprehensive views ; and, now has the j)rivilege of congratulating the State, the city, and the individual shareholders, that it has succeeded in inaugurating an era, when stockholders and tax-payers may anticipate reliably, regular returns from their investments in the road, the removal of burthens so long and nobly

" Under auspices so favorable, with all the impoi-tant connected interests finally and successfully harmonized, the Baltimore and Ohio Railroad, the pioneer of American railways, commenced thirty years since, will rapidly achieve, as the Board believes, its mighty destiny - tliat of the route favored by natm-e and perfected by art, which will have uo superior on this continent."

As illustrative of the improved condition of the road, derived from its Avestern connections and the completion of its appointments, the report of Dr. "W. S. Woodside, Master of Transportation, for 1856, is quoted. That officer says :

" The greatly improved condition of the Central Ohio Road, tiniting this road by so short a line with Columbus, Cincinnati, Indianapolis, and Louisville - to say nothing of the great flour and live stock regions of Ohio through which it passes - has secured to us a constant and available channel of communication, which uo untoward state of river navigation can affect. By this line, therefore, a regular, most desirable, and profitable freighting business has been maintained throughout the entire summer, and, contrary, to previous expectations, an average revenue of more than .s400,000 per month has been earned for the last three or four months, during which the Ohio river has been almost dry. * » * « * *

-" Perhaps there is no feature of the Company's operations during the past year, that presents more gratifying results than that of the flour trade ; the flour, brought by the Baltimore and Ohio road into the city of Baltimore for the twelve months, having reached the enormous quantity of y44-,083 barrels, of which 171,972 barrels was consigned to eastern ports, leaving 762,1G1 barrels as the contribution of the road to the trade of Baltimore city," being an increa.se of $281,047 08. With the revenue of the Washington Branch, of $454,459 81, added to the revenue of the Main Stem, above stated, it will swell tlie aggregate earnings of the Company, for the year just closed, to the sum of $5,071,458 79.

It will thus be seen that tlie progressive development of the Baltimore and Ohio Itailroad, from year to year, since its completion, has steadily continued ; and that from $1,325,000, in 1852, its earnings for the Main Stem alone have already swollen to nearly $5,000,000 - being an increase of some seventy per cent., or nearly (piadniple in extent.

inent at an early day ; the use of its jSTorth western Virginia Branch to Parkersbiirg : tlie ample facilities atibrded by its complete equipment, extended double track, and other features; the revenue may be expected to still increase from year to year - even with its present large disproportion of passenger and tonnage business, - until the aggregate earnings shall vie with those of the New York Central Road, - whoso passenger returns alone, during the past year, reached tlie enormous sum of $3,207,378 32, and whose aggregate returns bordered upon 8,000,000 of dollars.

TiiROtron Passexgkk BrsiNESs. - The statistics of the through travel on the road, since its opening to "Wheeling in the spring of 1858, show a peculiarly steady increase. For the first six months - from April to October, 1853 - during which the road was worked in its entire length, the number of through passengers between the East and West Avas but 2,48G.

The passenger revenue of tlie Main Stem, for 1857, having been $733,000, and the proportion thereof from through travel having been about $240,000, it would appear tliat the local travel of the road has increased but comparatively little during the four and a half years just elapsed since the comjjletion of the line to the Ohio river.

It will be noted in the revenue tables, that for every montli in the year, - with but a single exception, - there has beea an increase in the returns for passengers. This exception was in May last, when the "strike" riots temporarily affected the traveh Since May hist the iilcrcase has been pecuUarly marked, - - a gratitying result which arises altogether from the accession of through travel, secured by the completion of the western connecting lines, alluded to in my last annual report as promising to contribute largely to tliis branch of our business. Tlie natural attractions, the comforts, and the business advantages of the road are now only beginning to be properly appreciated, and as they be- come more and more widely known, the tide of travel must inevitably swell I'rom month to month, to the corresponding advantage of the Company.

" Among the reliances of the Company for an increase of its passenger earnings, is the growing sentiment of friendliness between the people of Baltimore and those of the great West, of which so many evidences were seen in the celebration of the opening of the Ohio and Mississippi road in June last, and more recently in the entertainment of their Western visitors by the citizens of Baltimore. The first occasion, indeed, was one in which the true greatness of the Baltimore and Ohio road was generally observed and commented upon by the many intelligent participants who had gathered at the great centres of Cincinnati and St. Louis, and of which the beneficial influence has been already sensibly felt in the interest thus awakened in the route.

" The peculiar advantages of the road in reference to its direct communication, - both from the East and the West, - with the healthful regions of the Alleghanies, are also becoming rapidly availed of by those who court the pure atmosphere and the rare scenery that render a summer sojourn there so desirable. The newly established hotels and dining halls materially add to the substantial success of the line as a passenger route, having afforded marked satisfaction to the travellers who have experienced the comforts they afford.

" A large proportion of the increase of through travel is found in the tickets between New York and the far West, the advantages presented for that business by this road continuing to attract a growing share of the passengers, especially to and from Cincinnati and St. Louis and tiie great Southwest.

" During the past year an improved business has been done in carrying emigrants to the West, and from the satisfaction given by the route to this travel, a further increase of it is looked for. The number of emigrant passengers carried westwardly during the year, was 4,812, of which 1,295 were ticketed at Philadelphia and New York, and 3,517 at Baltimore."'

The Telegraph. - Among the adjuncts tliat have contributed to the successful working of the road, and which is destined to prove more useful in future, the Company's Telegrapli Line deserves particular notice. The value of an Electric Telegraph in facilitating the operations of a railroad can hardly be computed by dollars and cents. It must now be recognized as an indispensable auxiliary to a well regulated road, and esj^ecially to a road of the length and traffic of the Baltimore and Ohio. During the year 1857 a new and improved wire has been placed upon the greater portion of tlie line, and additional stations have been opened so as to greatly enlarge its usefulness. The line has lK;en, in all respects, more thoroughly organized - a comjjetent su})eriiitendent appointed - a complete code of rules instituted for tlie government of tlie operators, and provision made (by the Master of tlie Koad) for its proper and constant repair. There are now thirty stations, witli appropriate instruments and operators, making one for every tliirteen miles of road between Haltimore and Wheeling. By the agency of tlie Telegraph, the Transportation De])artment is kept constantly advised of the movements of the trains, and arrangements

By this means, also, the most accurate time is kept upon the entire road. For that purpose an approved astronomical clock is provided at Camden Station, in Baltimore, from which the meridian is daily given by telegraph to each of the other twenty-nine oflBceson the line, who set their clocks accordingly, tlius practically insuring a correspondence of time for the 380 miles of road.

Organization. - The Baltimore and Ohio Railroad was the first in the United States to adopt tlie working organization formerly practised ill England, whence it was introduced about the year 1840, by its then president, the late Hon. Louis McLane.

This consisted mainly in the division of the superintendence of the working operations of the road into three brandies, called the " Road,'' " Machinery," and " Transportation " Departments, respectively, ranging in the order here named.

The position of General Superintendent was abolished, and the responsibilities thereof distributed among three several officers, entitled, the " masters " of the departments named.

In 184:8, upon the accession of the Hon. Thos. Swann to the presidency, and upon the recommencement of operations in the building of the road from Cumberland to Wheeling, the organization Avas changed by the introduction of a General Superintendent, - Mr. William Parker, from the Boston and Worcester Road, being assigned to that jiosition.

In October, 1853, the general superintendency Avas again abolished, and the departmental authority revived. This is still in force, and may be briefly explained as follows:

The Master of road has the general charge of all matters pertaining to the road-bed, the track, bridges, tunnels. de[)ot buildings of all kinds, water-stations, providing water, and other duties incidental to the preparation of the road for effectual use.

The Master of machinery has the immediate and full direction and control of the purchase, building, and repair of all the locomotive and other machincrj', the passenger, freight, and other cars; and the provision of all the various contrivances essential to the proper equipment of tlie road.

Tiic Master of transportation is intrusted with the procurement and the accommodation of the trade and travel of the road, witli the rates of charge therefor, the pi'cparation of the time-tables, and all

Great Ohio And Mississippi Railroad Opening

Upon the completion of tlie road to the Ohio, Avitli the great expansion of labor consequent thereupon, tlie orgauizatiou of all the dei)artments was necessarily eidarged. The Master of road was assigned two general assistants, and the heads of the other departments one assistant each.

In consequence of the rapid development of its business relations with other roads, the organization of the transportation department of the Company was further extended by the institution of the muchneeded offices of the General FreigJit Agent and the General Ticket Agent. A Superintendent of its Telegraph is also employed by the Company.

The practical operations of the road in all its details, are immediately overlooked by a nuuiber cf experienced and skilful olficers occupying the position of Foremen; Supervisors of trains, of engines, of track, of bridges and of water-stations, and of live stock ; and a number of General Agents at the several larger first-class stations.

The following List embraces the names and titles of the principal general officers in charge of the Co)npany's affairs, on the 1st day of January, 1858.

To affoni a better idea of the iininber of the personnel necessary to the current operations of this great concern, tlie following suinniary taken from a recent pay-roll, is given :

Allowing for the " short time" made by a portion of those who appear upon the rolls, there Avonld remain about 4,500 persons who ordinarily make " full time " in the Company's service.

Among the operatives of the road above embraced, may be named, ft)r the purpose of showing the extent and character of tlie service, tlie following, viz. :

The Cost and present Capital of the Road. - On the completion of the road to Wheeling, in 1853, the cost, including that of the Washington Branch, may be set down as follows :

Early in 1854, a loan Avas granted by the city of Baltimore, ol $5,1j00,000, for an additional expenditure in the following objects : - To [)ay a floating debt contracted in the large purchases of machinery at the opening of the road; to build 100 miles of additional second track ; to arch the tunnels on the new jjart of the line west of Cumberland; to complete the bridges and station buildings, and to add still further to tlie rolling stock. This loan lias been now nearly expended in tiiese important objects, nuich to the improvement of the road, thus increasing its capital to $26,000,000.

The Northwestern Virginia Railway, forming an important branch of tbe Baltimore and Ohio, has cost $5,000,000 more, which, further added, swells the total pijesext capital of this great corporation to the full sum of $31,000,000.

It may be remarked here as an extraordinary fact, that the assessed value of all tlie real estate in Baltimore at tlie period of the commciiceiiK-iit of tlie road in 1827, was but $27,000,000, or $4,000,000 loss than has been absorl>ed in tliis groat work, a result which, al- though but little dreamed of by its sagacious projector, Philip E. Thomas, who still survives, - in no degree detracts from the wisdom and foresight that guided him and his public-spirited coadjutors.

History Of The Northwestern Virginia Railroad

This road is practically a branch of the Baltimore and Ohio Kailroad, forming, as it does, the direct connection with the short lines to Cincinnati and St. Louis. ]!^ay n:iore, it covers the preci.';e ground by which the main track of the Baltimore and Ohio Eoad wonld have approached the Ohio river years ago, except for the unwise and unreasonable legislation already related, which forced tlie Company to make Wheeling its western terminus. To-day it assumes, in effect, for the lower or central West, the position of the main road from Baltimore to the Ohio, and it is appropriate, therefore, that its history phould follow next in order in these pages.

When the Baltimore and Ohio Raih-oad was near completion, or so far advanced that its successful operation at an eai-ly day was no longer matter of mere speculation, it became evident that some means must be contrived by which a connection with the Ohio could be obtained at a point far below Wheeling, and somewhere in the direct line between Baltimore and Cincinnati. In other words, Virginia herself saw that the legislation which had refused permission to that Company to pass over her territory, except on condition that the city of Wheeling should be made its western terminns, and so be made the point of junction of the railroads approaching the Ohio from the east and the west - was unwise, and exceedingly injurious to the mutual interests of the State and of the Railroad Company. It was determined, therefore, to permit that now, which for many years had been so injudiciously refused. A charter authorizing the construction of a railroad from the Ohio river at Parkersburg to the Baltimore and Ohio Railroad at the moutli of Tliroe Fork Creek, now (irafton, was granted by the legislature of Virginia on the l-tth of February, 1851, and on the 2d of August following, the necessary amount of stock having been subscribed, princii)ally by residents of Parkersburg and its vicinity, the Company was duly organized by the election of James Cook, President, and George Neale, Jr., Jetierson Gibbeus, Jonathan M. Bennett, ^Villiam Logan, and Joseph Spencer, Directors. iVt the iirst meeting of ihe Board, Benjamin II. Latrobe was appointed chief engineer, and was directed to proceed immediately to survey a route for the proposed road, to defray the expenses of which ten per cent, of the stock subscribed was called in and mostly paid before the close of that year. At the first annual meeting, additional stock having been subscribed at I5altiinore, Thomas Swann was elected president, and George Brown, Jolin Hopkins, Columbus O'Donnell, William McKim, Charles M. Keyser, Tliomas C. Jenkins and Benjamin DeFord, of Baltimore, and James Cook, Jol)n li. Murdoch, and George Neale, of Parkersburg, directors ; all of whom, with a single exception noticed below, have continued to manage the atfairs of the Company till this time.

The road having been located, and contracts for its construction advertised for under the first Board, their successors immediately proceeded to open the bids and assign the contracts. The construction was commenced late in December, 1852, and was prosecuted as vigorously as the finances of the Company would permit; no suspension of the work having been permitted at any time, notwithstanding several severe depressions in money affuu-s. causing the stoppage of many similar enterprises. The principal portion of the means used by tl.o Company has been derived from the guarantee of their bonds, to the amount of $1,500,000 each, by the Mayor and City Council of Baltimore and the Baltimore and Ohio Railroad Company. Without their promised aid the enterprise would not liave been undertaken.

By an economical management of these resources, and an additional issue of the Company's bonds without guarantee, the Board have been able to meet a cash expenditure for construction, averaging, during a great part of the time, over one hundred thousand dollars per month, with entire promptness and without extraordinary' sacrifices ; and to lay the last rail at the expiration of four years from the commenceujcnt of the construction. They had also provided rolling stock suitable for the opening of the road, on such terms as they hoped would enable them to meet the payments from the earnings of the work; hut ic being evident that additional equipment would soon be needed, and a oonsidorable sum being still required to prepare the road for a heavy business, it became manifest that tlie net earnings could not, for some time, be expected to meet these new expenditures in addition to the regularly recurring serai-annual interest. These and other considerations, hereafter mentioned, led to the transfer of tlie working and management of the road to the Baltimore and Ohio liailroad Company, under an agreement which is farther noticed in another place. Under the management of that Company the road was tirst fully opened for trade and travel throughout its whole length on the 1st of May, 1857.

As tlje result of a policy established at the beginning of the work, and steadily adhered to, the road has been located through the spurs of the Alleghanies covering Northwestern Virginia, on a line varying very little from its true direction, and yet with grades having a maximum of less than fifty-three feet to the mile, and with curves of never less than one thousand feet radius ; thus presenting no material obstruction to the rapid passage of trains with ordinary loads, dispensing entirely with assistant power, and not requiring the same expenditure for repairs as roads of a diflferent character. Two severe winters, and the subsequent thaws, have proved that the location is comparatively free from the danger of slides and slips, and that the drainage is sufficient to prevent any unusual settling of the road-bed. The masonry and superstructures of the bridges are permanent and substantial, and the tunnels well secured. It is the first road uniting all these advantages that has been constructed through a country presenting similar features ; and there are few anywhere which, when first opened to the public, were equally complete. The result is, that it is expected to require less than usual repairs for many years, and its working expenses on a good business will probably be less than those of any other road in use between the East and West. In short, as intended by its projectors, it is admirably adapted to facilitate the immense tonnage business which will be thrown upon it in future.

In defining the line of the road, great care was taken to secure the best route. The country between Grafton and Parkersburg is of very irregular topography, and presented many practicable lines, all of which Avere examined, and the present one adopted, after numerous and carefully compared surveys. The original idea as to the length of the line was that it would not fall short of 115 miles, the leading valleys being looked to as probably affording the only suitable route. The preliminary surveys however showed that a line of 110 miles could be had, and the estimates of cost were made upon that line. Subsequently, in locating the route for construction it was reduced to

103| miles, or some two miles sliorter than the turnpike between the same points. This reduction was not accomplished without a considerable increase of cost, judiciously submitted to, however, for the sake of the resulting advantages.

The line lias l)cen located with maximum grades of 1 foot in 100, or 52y,Y per mile, and curves of radii not less tlian 1,000 feet. To obtain these moderate grades and easy curves upon such ground, heavy work lias been necessary. The prominent feature of tlie location is the tunnels (of which there are 23 - the longest 2,700 feet, the shortest 150 feet), made necessary by the height and steepness of most of the ridges at the summits, and the abrupt windings of the larger valleys. There are, however, but two high embankments, and one long, deep cutting, and only three bridges of a span over 125 feet There are one permanent and two temporary trestle works of 'limited height and length. The longest grade is less than four miles, and the ascents and descents alternate, so as to afford frequent relief to the locomotive engines in their draft. The general descent of the line is westward, the height of Grafton above tide being 1,008 feet, and Parkersbnrg 523. This will favor the coal trade towards the Ohio, Avhich must become large. Upon the Baltimore and Ohio Eailroad between Grafton and Wheeling - 100 miles - the maximum grade is 79/^, and shortest radius of curvature GOO feet. Tlie character of the two routes is dili'orent, the Baltimore and Ohio Railroad pursuing the main valleys except at two points, to which its high grades and heavy work are chicHy ci)nfmed : the North-western Virginia Railroad occupying mostly the minor vrdleys with more frequent undulations of grade, and a more general distribution of its bolder features. It may become the better line for quick passenger travel besides, tlie more economical for freight - and hence, though actually four miles longer than to Wheel ing, and eight miles longer than to the Benwood Junction, it mnj- be virtually the shorter arm.

The North-western Virginia Railroad having been undertaken and com|)leted with a special view to the accommodation of that description of business, now offers to the bulkj' products of the West, tlie most expeditious route tu the seaboard, united with the shortest land transportation. It h.as been already demonstrated that these products, when keeinng tlie river to Parkersbnrg, can bo delivered at Baltimore in at least two days less time, and at cheaper rates than at any other eastern port. This fact alone is sufiicient to ensure to the North-western Virginia and Baltimore and Ohio Railroads the command of any desirable amount of Western lousiness, and while giving to Paikersl)iirg a com- rnercial importance which could not otherwise be attained, to enlianco that of Baltimore, until it becomes the first sliipping mart in the Union for Western productions. Tiiere can be no permanent rival of a route which combines both cheapness and expedition. Unusual facilities for lading and unlading are provided at Parkersburg for the accommodation of the river trade.

Tiie simultaneous opening of the Marietta and Cincinnati and the Ohio and Mississippi Railroads affords the additional advantage of a railroad connection with Cincinnati and St. Louis. Tlie forjner having, through local influence, been diverted from its original terminus at Belpre, opposite Parkersburg, without the construction of the branch to that point promised Avhen the diversion was effected, the effect is to unnecessaril}' impair and lengthen the route. The interests of both roads strongly demand a closer and more available connection, either by a line from Scott's Landing to Belpre, eiglit miles, or from Vincent's some twelve miles, the latter being preferable, but the least practicable. The construction of the proposed Hocking Valley Railroad to a point on the Marietta line, twenty-eight miles from Parkersburg, and thirty-two from Marietta, over a superior route, promises to obviate the disadvantage, and if continued to tlie Cincinnati, Wilmington and Zanesvdle Railroad at Lancaster, would furnish an entirely independent line, offering some peculiar advantages. But even with the present connection, the railroad route, of Avhich tlie Northwestern Virginia road is part, is fifty-two nffles shorter than any other between tide-water and Cincinnati.

As the Xorth-western Virginia road approaolied completion, it became necessary for the Board to arrange witli tlie Baltimore and Ohio Company, - of whose road tlieir own is practically a western extension, - for the transfer from one to the other of mercliandise and passengers without change of cars or avoidable delay. The fact that the rolling stock employed in the tlirougli business must pass over nearly three miles of the former to one of tlie latter, and the Avant of a sufficient equipment on the part of tiiis company, rendered it imperative that the Baltimore and Oliio Railroad Company should furnish the cars and a portion of the locomotives for the tlirougli tonnage business. Difficulties were experienced in properly adjusting the ju-oportions of revenue and expenses of tlie respective companies, wliich, with many similar considerations, led to the conclusion that, for the present at least, the working of the two roads in connection could only be made available by being under one management. The result was, that by an agreement mutually entered into on tlie 27th of December, 1850, the Haiti- more and Ohio Railroad Company contracted to work the Northwestern Virginia Raih'oad, witii their own rolling stock, for the period of five years, reserving to themselves, in consequence of the disproportioned expenditure required of them at the beginning, the exclusive option to renew the contract for the like period on the same terms.

The contract, in fact, looks to the mergence of the North-western Virginia in the Baltimore and Ohio Railroad Company, with the consent of the stockholders of each, on terms mutually advantageous, if the necessary legislation can be obtained. The provisions of that instrument should therefore be judged with reference to this expectation, as the object of both parties was to realize at once, as far as practicable, all the benefits anticipated from a consolidation. Should that consummation be effected, the surviving company will become the owners of all the property and franchises, and assume all tlie existing liabilities of the other, and will issue their stock in redemption of the stock of the latter, dollar for dollar.

It was imperative, under the circumstances, that funds should be provided to discharge the floating debt of the coinpanj-, due principally to contractors and those wlio had furnished materials used in the construction of the road, and that the interest on the bond debt should be promptly paid as it accrued, in order to sustain the market value of the bonds which remained to be sold for its account, or were held by the Baltimore and Ohio Company as a security for their advances. It was expected that the floating debt would be met by the use of the remaining resources of the company, consisting principally, besides the unsold bonds which were specificall}' appropriated, of the uncoUected stock, the surplus real estate, and tiie rolling stock and other implements and property ap[)licable to the future purposes of the road, which had been necessarily accumulated during the construction. The latter the Baltimore and Ohio Railroad Comi)any agreed to purchase, as well as the Grafton station, with its buildings, machinery, &c., which had been acquired'and arranged with a view to the use which must necessarily be made of it by that company for their exclusive purposes, and to fiicilitate their connection with the North-western Virginia Railroad.