"Well," I then said, "I am very fresh this morning. But what did
you do last night?"
He answered that he was so exhausted that he went to Delmonico's
and ordered the best dinner possible. Then he went on to say:
"A friend told me a little game was going on up-stairs, and in
a close room filled with tobacco smoke I played poker until two
o'clock and drank several high-balls. The result is, I think we
better postpone this meeting, for I do not feel like doing
anything to-day."
"My dear friend," I said, "you will get the credit of giving your
whole time to business, while I am by doing what refreshes my mind
discredited, because it gets in the papers. I shall keep my
method regardless of consequences."
He kept his, and although much younger than myself died years ago.
George B. Roberts, president of the Pennsylvania, was a very wise
executive and of all-around ability. Frank Thompson, vice-president
and afterwards president of the same road, was one of the ablest
operating officers of his time and a most delightful personality.
Mr. A. J. Cassatt was a great engineer and possessed rare foresight
and vision. He brought the Pennsylvania into New York City through
a tunnel under the Hudson River, continued the tunnel across the
city to the East River and then under the river to connect with the
Long Island, which he had acquired for his system.
D. W. Caldwell, president of the New York, Chicago, and St. Louis,
added to railway ability wit and humor. He told a good story on
Mr. George Roberts. Caldwell was at one time division superintendent
under President Roberts. He had obtained permission to build a new
station-house, in whose plan and equipment he was deeply interested.
It was Mr. Roberts's habit, by way of showing his subordinates
that he was fully aware of their doings, to either add or take away
something from their projects.
Caldwell prepared a station-house according to his ideas, and,
to prevent Roberts from making any essential changes he added
an unnecessary bay window to the front of the passengers' room.
Roberts carefully examined the plans and said: "Remove that bay
window," and then approved the plan, and Caldwell had what
he wanted.
Caldwell used to tell of another occasion when on a Western line
he had over him a very severe and harsh disciplinarian as president.
This president was a violent prohibitionist and had heard that
Caldwell was a bonvivant. He sent for Caldwell to discipline or
discharge him. After a long and tiresome journey Caldwell arrived
at the president's house. His first greeting was: "Mr. Caldwell,
do you drink?"
Caldwell, wholly unsuspicious, answered: "Thank you, Mr. President,
I am awfully tired and will take a little rye."
Mr. E. B. Thomas, president of the Lehigh Valley, was a valuable
member of the association. The Baltimore and Ohio, as usual, had
its president, Mr. Charles F. Mayer, accompanied by an able staff.
The Erie was represented by one of the most capable and genial
of its many presidents, Mr. John King.
King was a capital story-teller, and among them I remember this
one: At one time he was general manager of the Baltimore and Ohio
under John W. Garrett. In order to raise money for his projected
extensions, Garrett had gone to Europe. The times were financially
very difficult. Johns Hopkins, the famous philanthropist, died.
His immortal monument is the Johns Hopkins University and Medical
School. Everybody in Baltimore attended the funeral. Among the
leading persons present was another John King, a banker, who was
Hopkins's executor. A messenger-boy rushed in with a cable for
John King, and handed it to John King, the executor, who sat at
the head of the mourners. He read it and then passed it along
so that each one could read it until it reached John King, of the
Baltimore and Ohio, who sat at the foot of the line. The cable
read as follows: "Present my sympathies to the family and my high
appreciation of Mr. Johns Hopkins, and borrow from the executor
all you can at five per cent. Garrett."
Commodore Vanderbilt was succeeded in the presidency by his son,
William H. Vanderbilt, who was then past forty years old and had
been a successful farmer on Staten Island. He was active in
neighborhood affairs and in politics. This brought him in close
contact with the people and was of invaluable benefit to him when
he became president of a great railroad corporation. He also
acquired familiarity in railway management as a director of one
on Staten Island.
Mr. William H. Vanderbilt was a man of great ability, and his
education made him in many ways an abler man than his father
for the new conditions he had to meet. But, like many a capable
son of a famous father, he did not receive the credit which was
due him because of the overshadowing reputation of the commodore.
Nevertheless, on several occasions he exhibited the highest
executive qualities.
One of the great questions of the time was the duty of railroads
to the cities in which they terminated, and the decision of the
roads south of New York to have lower rates to Philadelphia and
Baltimore. New York felt so secure in the strength of its unrivalled
harbor and superior shipping facilities that the merchants and
financiers were not alarmed. Very soon, however, there was such
a diversion of freight from New York as to threaten very seriously
its export trade and the superiority of its port. The commercial
leaders of the city called upon Mr. Vanderbilt, who after the
conference said to them: "I will act in perfect harmony with you
and will see that the New York Central Railroad protects New York City
regardless of the effect upon its finances." The city representatives
said: "That is very fine, and we will stand together."
Mr. Vanderbilt immediately issued a statement that the rates to
the seaboard should be the same to all ports, and that the
New York Central would meet the lowest rates to any port by
putting the same in effect on its own lines. The result was
the greatest railroad war since railroads began to compete.
Rates fell fifty per cent, and it was a question of the survival
of the fittest. Commerce returned to New York, and the competing
railroads, to avoid bankruptcy, got together and formed the
Trunk Line Association.
New York City has not always remembered how intimately bound is
its prosperity with that of the great railroad whose terminal is
within its city limits. Mr. Vanderbilt found that the railroad and
its management were fiercely assailed in the press, in the
legislature, and in municipal councils. He became convinced that
no matter how wise or just or fair the railroad might be in the
interests of every community and every business which were so
dependent upon its transportation, the public would not submit to
any great line being owned by one man. The Vanderbilt promptness
in arriving at a decision was immediately shown. He called upon
Mr. Pierpont Morgan, and through him a syndicate, which Morgan
formed, took and sold the greater part of Mr. Vanderbilt's
New York Central stock. The result was that the New York Central
from that time was owned by the public. It is a tribute to the
justice and fairness of the Vanderbilt management that though the
management has been submitted every year since to a stockholders'
vote, there has practically never been any opposition to a
continuance of the Vanderbilt policy and management.
Among the most important of the many problems during Mr. Vanderbilt's
presidency was the question of railway commissions, both in national
and State governments. In my professional capacity of general
counsel, and in common with representatives of other railroads,
I delivered argumentative addresses against them. The discussions
converted me, and I became convinced of their necessity. The
rapidly growing importance of railway transportation had created
the public opinion that railway management should be under the
control and supervision of some public body; that all passengers
or shippers, or those whose land was taken for construction and
development, should have an appeal from the decision of the railway
managers to the government through a government commission.
As soon as I was convinced that commissions were necessary for
the protection of both the public and the railroads, I presented
this view to Mr. Vanderbilt. The idea was contrary to his education,
training, and opinion. It seemed to me that it was either a
commission or government ownership, and that the commission, if
strengthened as a judicial body, would be as much of a protection
to the bond and stock holders and the investing public as to the
general public and the employees. Mr. Vanderbilt, always
open-minded, adopted this view and supported the commission system
and favored legislation in its behalf.
In 1883 Mr. Vanderbilt decided, on account of illness, to retire
from the presidency, and Mr. James H. Rutter was elected his
successor. Mr. Rutter was the ablest freight manager in the
country, but his health gave way under the exactions of executive
duties, and I acted largely for him during his years of service.
He died early in 1885, and I was elected president.
The war with the West Shore had been on for several years, with
disastrous results to both companies. The Ontario and Western,
which had large terminal facilities near Jersey City on the west
side of the Hudson, ran for fifty miles along the river before
turning into the interior. At its reorganization it had ten millions
of cash in the treasury. With this as a basis, its directors
decided to organize a new railroad, to be called the West Shore,
and parallel the New York Central through its entire length to
Buffalo. As the New York Central efficiently served this whole
territory, the only business the West Shore could get must be
taken away from the Central. To attract this business it offered
at all stations lower rates. To retain and hold its business the
New York Central met those rates at all points so that financially
the West Shore went into the hands of a receiver.
The New York Central was sustained because of its superior
facilities and connections and established roadway and equipment.
But all new and necessary construction was abandoned, maintenance
was neglected, and equipment run down under forced reduction of
expenses.
I had very friendly personal relations with the managers and
officers of the West Shore, and immediately presented to them
a plan for the absorption of their line, instead of continuing
the struggle until absolute exhaustion. Mr. Vanderbilt approved
of the plan, as did the financial interests represented by
Mr. Pierpont Morgan.
By the reorganization and consolidation of the two companies the
New York Central began gradually to establish its efficiency and
to work on necessary improvements. As evidence of the growth
of the railway business of the country, the New York Central
proper has added since the reorganization an enormous amount of
increased trackage, and has practically rebuilt, as a necessary
second line, the West Shore and used fully its very large terminal
facilities on the Jersey side of the Hudson.
During his active life Mr. Vanderbilt was very often importuned
to buy a New York daily newspaper. He was personally bitterly
assailed and his property put in peril by attacks in the press.
He always rejected the proposition to buy one. "If," he said,
"I owned a newspaper, I would have all the others united in
attacking me, and they would ruin me, but by being utterly out of
the journalistic field, I find that taking the press as a whole
I am fairly well treated. I do not believe any great interest
dealing with the public can afford to have an organ."
Colonel Scott, of the Pennsylvania, thought otherwise, but the
result of his experiment demonstrated the accuracy of Mr. Vanderbilt's
judgment. Scott selected as editor of the New York World one of
the most brilliant journalistic writers of his time, William H. Hurlburt.
When it became known, however, that the World belonged to
Colonel Scott, Hurlburt's genius could not save it. The circulation
ran down to a minimum, the advertising followed suit, and the
paper was losing enormously every month. Mr. Joseph Pulitzer,
with the rare insight and foresight which distinguished him, saw
what could be made of the World, with its privileges in the
Associated Press, and so he paid Scott the amount he had originally
invested, and took over and made a phenomenal success of this
bankrupt and apparently hopeless enterprise.
I tried during my presidency to make the New York Central popular
with the public without impairing its efficiency. The proof of the
success of this was that without any effort on my part and against
my published wishes the New York delegation in the national
Republican convention in 1888, with unprecedented unanimity
presented me as New York's candidate for president. I retired
from the contest because of the intense hostility to railroad men
in the Western States. Those States could not understand how
this hostility, which they had to railroads and everybody connected
with them, had disappeared in the great State of New York.
During my presidency the labor question was very acute and strikes,
one after another, common. The universal method of meeting the
demands of labor at that time was to have a committee of employees
or a leader present the grievances to the division superintendent
or the superintendent of motive power. These officers were
arbitrary and hostile, as the demands, if acceded to, led to an
increase of expenses which would make them unpopular with the
management. They had a difficult position. The employees often
came to the conclusion that the only way for them to compel the
attention of the higher officers and directors was to strike.
Against the judgment of my associates in the railway management
I decided to open my doors to any individual or committee of the
company. At first I was overwhelmed with petty grievances, but
when the men understood that their cases would be immediately heard
and acted upon, they decided among themselves not to bring to me
any matters unless they regarded them of vital importance. In
this way many of the former irritations, which led ultimately to
serious results, no longer appeared.
I had no trouble with labor unions, and found their representatives
in heart-to-heart talks very generally reasonable. Mr. Arthur,
chief of the Brotherhood of Locomotive Engineers, had many of
the qualities of a statesman. He built up his organization to be
the strongest of its kind among the labor unions. I enjoyed his
confidence and friendship for many years.
There never was but one strike on the New York Central during
my administration, and that one occurred while I was absent in
Europe. Its origin and sequel were somewhat dramatic. I had
nearly broken down by overwork, and the directors advised me to
take an absolute rest and a trip abroad.
I sent word over the line that I wanted everything settled before
leaving, and to go without care. A large committee appeared in
my office a few mornings after. To my surprise there was a
representative from every branch of the service, passenger and
freight conductors, brakemen, shopmen, yardmen, switchmen, and
so forth. These had always come through their local unions.
I rapidly took up and adjusted what each one of the representatives
of his order claimed, and then a man said: "I represent the
locomotive engineers."
My response was: "You have no business here, and I will have
nothing to do with you. I will see no one of the locomotive
engineers, except their accredited chief officer."
"Well," he said, "Mr. President, there is a new condition on
the road, a new order of labor called the Knights of Labor. We
are going to absorb all the other unions and have only one. The
only obstacle in the way is the locomotive engineers, who refuse
to give up their brotherhood and come in with us, but if you will
recognize us only, that will force them to join. Now, the Brotherhood
intends to present a demand very soon, and if you will recognize
our order, the Knights of Labor, and not the Brotherhood of
Locomotive Engineers, we will take care of what they demand and
all others from every department for two years, and you can take
your trip to Europe in perfect peace of mind. If you do not do
this there will be trouble."
I declined to deal with them as representatives of the Brotherhood
of Locomotive Engineers. Then their spokesman said: "As this
is so serious to you, we will give you to-night to think it over
and come back in the morning."
I immediately sent for the superintendent of motive power and
directed him to have posted by telegraph in every roundhouse that
the request of the Brotherhood of Locomotive Engineers, of which
this committee had told me, had been granted. The next morning
the committee returned, and their leader said: "Well, Mr. President,
you have beaten us and we are going home."
Then I appealed to them, saying: "I am a pretty badly broken-up
man. The doctors tell me that if I can have three months without
care I will be as good as ever. You must admit that I have at
all times been absolutely square with you and tried to adjust
fairly the matters you have brought to me. Now, will you take
care of me while I am absent?"
They answered unanimously: "Mr. President, we will, and you can
be confident there will be no trouble on the New York Central while
you are away."
I sailed with my mind free from anxiety, hopeful and happy, leaving
word to send me no cables or letters. After a visit to the
Passion Play at Ober-Ammergau in Upper Bavaria, I went into the
Austrian Tyrol. One night, at a hotel in Innsbruck, Mr. Graves,
a very enterprising reporter of a New York paper, suddenly burst
into my room and said: "I have been chasing you all over Europe
for an interview on the strike on the New York Central." This
was my first information of the strike.
As soon as I had left New York and was on the ocean, the young
and ambitious officers who were at the head of the operations of
the railroad and disapproved of my method of dealing with the
employees, discharged every member of the committee who had
called upon me. Of course, this was immediately followed by a
sympathetic outburst in their behalf, and the sympathizers were
also discharged. Then the whole road was tied up by a universal
strike. After millions had been lost in revenue by the railroad
and in wages by the men, the strike was settled, as usual, by a
compromise, but it gave to the Knights of Labor the control, except
as to the Brotherhood of Locomotive Engineers. The early settlement
of the strike was largely due to the loyalty and courage of
the Brotherhood.
During my presidency I was much criticised by the public, but
never by the directors of the company, because of my activities
in politics and on the platform. For some time, when the duties
of my office became most onerous, and I was in the habit of working
all day and far into the night, I discovered that this concentrated
attention to my railroad problems and intense and continuous
application to their solution was not only impairing my efficiency
but my health. As I was not a sport, and never had time for games
or horses, I decided to try a theory, which was that one's daily
duties occupied certain cells of the brain while the others
remained idle; that the active cells became tired by overwork
while others lost their power in a measure by idleness; that if,
after a reasonable use of the working cells, you would engage
in some other intellectual occupation, it would furnish as much
relief or recreation as outdoor exercise of any kind. I had a
natural facility for quick and easy preparation for public speaking,
and so adopted that as my recreation. The result proved entirely
successful.
After a hard day's work, on coming home late in the afternoon,
I accustomed myself to take a short nap of about fifteen minutes.
Then I would look over my tablets to see if any engagement was
on to speak in the evening, and, if so, the preparation of the
speech might be easy, or, if difficult, cause me to be late at
dinner. These speeches were made several times a week, and mainly
at banquets on closing of the sessions of conventions of trade
organizations of the country. The reciprocal favors and friendship
of these delegates transferred to the New York Central a large
amount of competitive business.
While I was active in politics I issued strict orders that every
employee should have the same liberty, and that any attempt on
the part of their superior officers to influence or direct the
political action of a subordinate would be cause for dismissal.
This became so well known that the following incident, which was
not uncommon, will show the result.
As I was taking the train the morning after having made a political
speech at Utica, the yardmaster, an Irishman, greeted me very
cordially and then said: "We were all up to hear ye last night,
boss, but this year we are agin ye."
The position which this activity gave me in my own party, and the
fact that, unlike most employers, I protected the employees in
their liberty and political action, gave me immense help in
protecting the company from raids and raiders.
We had a restaurant in the station at Utica which had deteriorated.
The situation was called to my attention in order to have the evils
corrected by the receipt of the following letter from an indignant
passenger: "Dear Mr. President: You are the finest after-dinner
speaker in the world. I would give a great deal to hear the speech
you would make after you had dined in the restaurant in your
station at Utica."
After thirteen years of service as president I was elected chairman of
the board of directors. Mr. Samuel R. Callaway succeeded me as
president, and on his resignation was succeeded by Mr. William H. Newman,
and upon his resignation Mr. W. C. Brown became president.
Following Mr. Brown, Mr. Alfred H. Smith was elected and is still
in office. All these officers were able and did excellent service,
but I want to pay special tribute to Mr. Smith.
Mr. Smith is one of the ablest operating officers of his time.
When the United States Government took over the railroads he was
made regional director of the government for railroads in this
territory. He received the highest commendation from the government
and from the owners of the railroads for the admirable way in
which he had maintained them and their efficiency during the
government control.
On the surrender of the railroads by the government, Mr. Smith was
welcomed back by his directors to the presidency of the New York Central.
The splendid condition of the Central and its allied lines is
largely due to him. During his service as regional director the
difficult task of the presidency of the New York Central was very
ably performed by Mr. William K. Vanderbilt, Jr. Though the
youngest among the executive officers of the railroads of the
country, he was at the same time one of the best.
Among the efficient officers who have served the New York Central
during the time I have been with the company, I remember many on
account of their worth and individuality. H. Walter Webb came
into the railway service from an active business career. With
rare intelligence and industry he rapidly rose in the organization
and was a very capable and efficient officer. There was
Theo. Voorhees, the general superintendent, an unusually young
man for such a responsible position. He was a graduate of
Troy Polytechnical School and a very able operating officer.
Having gone directly from the college to a responsible position,
he naturally did not understand or know how to handle men until
after long experience. He showed that want of experience in a
very drastic way in the strike of 1892 and its settlement. Being
very arbitrary, he had his own standards. For instance, I was
appealed to by many old brakemen and conductors whom he had
discharged. I mention one particularly, who had been on the road
for twenty-five years. Voorhees's answer to me was: "These old
employees are devoted to Toucey, my predecessor, and for efficient
work I must have loyalty to me."
I reversed his order and told him I would begin to discharge, if
necessary, the latest appointments, including himself, keeping
the older men in the service who had proved their loyalty to the
company by the performance of their duties.
Mr. Voorhees became afterwards vice-president and then president
of the Philadelphia and Reading. With experience added to his
splendid equipment and unusual ability he became one of the best
executives in the country.
Mr. John M. Toucey, who had come up from the bottom to be general
superintendent and general manager, was a hard student. His close
contact with his fellow employees gave him wonderful control over
men. He supplemented his practical experience by hard study and
was very well educated. Though self-taught, he had no confidence
in the graduates of the professional schools.
In selecting an assistant, one of them told me that Toucey subjected
him to a rigid examination and then said: "What is your
railroad career?"
"I began at the bottom," answered the assistant, "and have filled
every office on my old road up to division superintendent, which
I have held for so many years."
"That is very fine," said Toucey, "but are you a graduate of the
Troy Technical School?"
"No, sir."
"Of the Stevens Tech.?"
"No, sir."
"Of Massachusetts Tech.?"
"No, sir."
"Then you are engaged," said Toucey.
Mr. Toucey was well up-to-date, and differed from a superintendent
on another road in which I was a director. The suburban business
of that line had increased very rapidly, but there were not enough
trains or cars to accommodate the passengers. The overcrowding
caused many serious discomforts. I had the superintendent called
before the board of directors, and said to him: "Why don't you
immediately put on more trains and cars?"
"Why, Mr. Depew," he answered, "what would be the use? They are
settling so fast along the line that the people would fill them up
and overcrowd them just as before."
I was going over the line on an important tour at one time with
G. H. Burroughs, superintendent of the Western Division. We were
on his pony engine, with seats at the front, alongside the boiler,
so that we could look directly on the track. Burroughs sat on
one side and I on the other. He kept on commenting aloud by way
of dictating to his stenographer, who sat behind him, and praise
and criticism followed rapidly. I heard him utter in his monotonous
way: "Switch misplaced, we will all be in hell in a minute," and
then a second afterwards continue: "We jumped the switch and
are on the track again. Discharge that switchman."
Major Zenas Priest was for fifty years a division superintendent.
It was a delightful experience to go with him over his division.
He knew everybody along the line, was general confidant in their
family troubles and arbiter in neighborhood disputes. He knew
personally every employee and his characteristics and domestic
situation. The wives were generally helping him to keep their
husbands from making trouble. To show his control and efficiency,
he was always predicting labor troubles and demonstrating that
the reason they did not occur was because of the way in which
he handled the situation.
Mr. C. M. Bissell was a very efficient superintendent, and for
a long time in charge of the Harlem Railroad. He told me this
incident. We decided to put in effect as a check upon the
conductors a system by which a conductor, when a fare was paid
on the train, must tear from a book a receipt which he gave to
the passenger, and mark the amount on the stub from which the
receipt was torn. Soon after a committee of conductors called
upon Mr. Bissell and asked for an increase of pay. "Why," Bissell
asked, "boys, why do you ask for that now?"
After a rather embarrassing pause the oldest conductor said:
"Mr. Bissell, you have been a conductor yourself."
This half century and six years during which I have been in the
service of the New York Central Railroad has been a time of
unusual pleasure and remarkably free from friction or trouble.
In this intimate association with the railroad managers of the
United States I have found the choicest friendships and the most
enduring. The railroad manager is rarely a large stockholder,
but he is a most devoted and efficient officer of his company.
He gives to its service, for the public, the employees, the
investors, and the company, all that there is in him. In too many
instances, because these officers do not get relief from their labor
by variation of their work, they die exhausted before their time.
The story graphically told by one of the oldest and ablest of
railroad men, Mr. Marvin Hughitt, for a long time president and
now chairman of the Chicago and Northwestern Railway, illustrates
what the railroad does for the country. Twenty-five years ago the
Northwestern extended its lines through Northern Iowa. Mr. Hughitt
drove over the proposed extension on a buckboard. The country
was sparsely settled because the farmers could not get their
products to market, and the land was selling at six dollars per acre.
In a quarter of a century prosperous villages and cities had grown
up along the line, and farms were selling at over three hundred
dollars per acre. While this enormous profit from six dollars
per acre to over three hundred has come to the settlers who held
on to their farms because of the possibilities produced by the
railroad, the people whose capital built the road must remain
satisfied with a moderate return by way of dividend and interest,
and without any enhancement of their capital, but those investors
should be protected by the State and the people to whom their
capital expenditures have been such an enormous benefit.