"NEW YORK, _March 24, 1864_.
"MY DEAR SIR,--An absence from the city and the occupations preparatory
to it have deferred my acknowledgment of your letter longer than I
intended.
"In respect to the first topic of your letter, although we both agree
in considering it practically past, the desire I have that the real
state of facts should be completely understood by you induces me to add
a word to our former discussions.
"As nearly as I can now recollect, the misunderstanding occurred about
the time, I think even before, my action in respect to the Peninsula
was decided. The false relation between Mr. Ogden and you with the
impressions which such of our friends as occasionally met Mr. Parsons
derived from him repelled overtures to you. Mr. O. always said that he
thought he could satisfy you, but doubted and deferred.
"There never was a moment when I did not desire to communicate with
you; but my acquaintance was so slight that I thought it necessary to
wait for others, until at last I forced a breaking of the ice, and our
interview took place.
"But enough of this. I should not recur to the topic if I had not a
great respect for you. The past is gone. We can deal only with the
present. That is within our powers. I do not think that, on the whole,
we cannot now do nearly as well as if we had done what was best at
first. For myself, I have so often felt your reproach for having
omitted to promote our understanding, so capable of benefits to both
sides, that I am determined as to the present and the future, which
alone are in our power--that the boot shall be on the other leg.
"Coming now to what is the really important part of your letter--put
after the fashion of the ladies in the P. S.--it must be admitted that
if you should meditate anything more than a mere _sale_ on the best
security--anything approaching in part to a sharing of the common joys
and sorrows of the adventure--the future policy of Peninsular company,
in the particulars mentioned by you, would be an important matter.
"I think that policy will be, whether in your society or out of it,
_conservative_ to your heart's content.
"It would, no doubt, be very desirable to have the terminus of the
Peninsular at Escanaba or Sand Point connected with Green Bay by rail.
What we can do on that point, and what we cannot, has been definitely
announced to Mr. Ogden and others by me assuming to speak for the very
solid gentlemen who are the principal owners of the Peninsular.
"If the Northwestern will build that road we shall be glad. We do not
believe the difficulty of operating it in the winter is any more real
than it was supposed to be from Boston to Albany or from Piermont to
Dunkirk twenty years ago; or as much so as on the Chicago and St. Louis
in 1856. There will be a telegraph to Marquette in a few months. An
all-rail line to that point would revolutionize the region.
"If the N. W. needs the privileges of our charter or the land grant
which attaches to the portion of the line from Escanaba to the
Menominee, we ought to accord them so that we incur no pecuniary
liability for the construction or operation of the line.
"If the N. W. needs that we consent to a modification of the drawback
which it is to allow us on its whole 242 miles for joint business that
comes to or from the Peninsula--we may do that.
"But we cannot dilute our present investment by what will be inferior,
though incidentally very desirable to us; or enlarge our undertaking
from what we know to be completely within our means, of which we have
measured the cost, and except to a very subordinate extent fixed it by
purchases and contracts. If any of us aid the line south by taking an
interest in it, it will be as a separate adventure.
"Not only has this been our uniform answer to such suggestions, but
our present mortgage expressly excludes any extensions south from its
provisions in favor of extensions north.
"Now as to extensions north, our policy would be not less provident. We
must feel our way, accepting only what will surely be remunerative and
not diluting our investment.
"So much in answer to your letter.
"Now a few words in addition on the general subject.
"1. Separately, our charges can scarcely fail to be affected 25 cents
by the mutual fear of competition, alleviated as much as possible. That
all comes from the profits on 300,000 tons; it is the interest on a
million.
"2. In a state of paper-money prices, advancing constantly because
of increasing issues, we can protect ourselves only by making rates
correspond with daily increasing expenses.
"This is not apt to be done with sufficient promptitude and boldness.
"You will be and we shall be timid and laggard in meeting the
exigencies which are before us--from fear of competition and from the
delay which always attends arrangements between independent parties.
"3. We should better our condition as to our land grants if our efforts
were joined. We could do so at the present session of Congress.
"There are other considerations which I have not time to discuss.
"It is necessary to arrive at results as soon as possible.
"1. Some important construction we have deferred to await the
negotiations.
"2. We shall soon have to decide important questions which would be
affected very materially by the junction of our interests. Of course,
we are not so improvident as to act now on the hypothesis of successful
negotiations between us.
"Our construction is advancing well. We have sent up 400 additional men
since Feb. 1. We still strain every nerve for completion June 1. None
of our managers in the West fear that it will be much later. I assure
you that in this respect and in all respects our affairs were never so
promising as now. I express my strong desire to form a junction of our
interests as frankly as if you did not represent the other party to the
negotiation; for, while attending carefully to everything necessary to
our independent existence, I see that it can still be bettered by the
measure contemplated. There is no mistake so common among business men
as to suppose that what one gains another loses. I have just had an
illustration of this in making in behalf of the bondholders of the Fort
Wayne a counter proposition to that of the stockholders under which the
stock rose 40 per cent.
"It is important to all interests that a conclusion be arrived at as
soon as possible. When you are in a situation to negotiate definitely,
with full powers, I shall be glad to discuss and also to submit
suggestions, and shall be ready to conclude arrangements, if any be
found practicable.
"Please excuse the rambling haste in which I write.
"I remain,
"Very truly,
"Your friend,
"S. J. TILDEN."
"_Joseph S. Fay, Esqr., Boston, Mass._"