USA > Delaware > Historical and biographical encyclopaedia of Delaware. V 1 > Part 29
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Mr. Felton, from the committee appointed to negotiate for a line of steamers, submitted a proposition from the principal owner of the steamboat St. Nicholas, at that time on the line from Philadelphia to Lewes, offering to sell the boat to the Company, and submitting his terms: the offer was rejected by the Board,
til January Ist, 1858, "provided a guarantee of like amount was obtained from other was parties supposed to be equally interested in this enterprise." The terms were not agreed to, and no further attempt was made at that time to establish a Bay Line from Seaford.
In the meantime the citizens of Somerset county, Maryland, had organized a Company to build a railroad from Somers' Cove, on Tan- gier Sound, to the State line of Delaware, under the old charter of The Eastern Shore Railroad of 1833, revived and amended in 1853, giving the Company authority to con- nect their line with the Delaware Railroad. They had received assurances from the Dela- ware Railroad Company "that it was the policy and interest of the Company to ex- tend their road from the Nanticoke River to the State line," to make this connec- tion ; and in March, 1859, E. Q. Sewell, again Engineer in Chief of the Company, was directed to make the necessary sur- veys for the extension: and in April a contract was entered into with George A. Parker, Esq., (late in the employment of the Philadelphia, Wilmington & Baltimore Railroad Company,) to build the road; the "Extension" was built under the authority granted the Delaware Railroad Company by the original charter.
LEGISLATIVE AID.
The stock subscribed, mainly by citizens of Laurel, amounted to $10,000: (the subscriptions were subsequently increased to $27,oco). This sum would not go far towards building 13 miles of railroad, and as the Company was daily increasing the amount of its indebted- ness in finishing the work on the main line, it was found necessary to ask aid from the Legis- lature in view of the enlargement of the improvement by this extension. The State consented to assign and transfer to the Com- pany the dividends on the State Stock, heretofore subscribed and paid for by the tax on the New Castle and French Town Turnpike and Railroad Company : the act declaring that " the dividends should form a permanent sinking -fund to pay off any debt created by the said Delaware Railroad Company."
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HISTORY OF DELAWARE.
This was merely " the residuary interest of academies, and a church also in New Castle the State in the stock of the Company " after County. the expiration of twenty-one years, for which it ! It was evident the chief manager of the lottery bill entertained no scruples as to the means employed for the success of the scheme; regardless of public opinion he held the forces he had organized strictly to their work, by all the arts and inducements at his command ; liberal in gifts, and more liberal in promises, he was trusted because the source of his rev- enues seemed to be inexhaustible. was granted by the act of February 28th 1855; the benefit to be derived from it was therefore very remote, and could be of no present use. A proviso was appended to this "act " similar to that of the former grant, "that the Dela- ware Railroad Company shall by resolution duly passed and entered on its minutes, bind itself not at this or any further session of the Legisture, to ask for precuniary aid from the State or the loan of the State's credit."
The refusal of this and several preceding Legislatures to make appropriations adequate to the necessities of this great public improve- ment, which had already contributed so much to the value of assessable property, can hardly be excused on the usual plea that the State would be involved thereby in a debt which would ultimately become a public burden. There was the least possible risk of such a re- sult in the loan of the State's credit.secured by the guarantees which the two Companies were prepared to give.
THE LOTTERY GRANT.
The session of 1859 will be long remembered as the only one when the State Legislature quite "gave way" to the advocates of a mon- strous Lottery Scheme ; it is true that in for- mer years lottery grants had been made, but on a scale trifling and insignificant compared with this one. Richard France was the ap- plicant, and Stephen Broadbent, his associate, (and subsequently his surety,) organized the "lobby," that made the raid upon the general assembly. The plan was premeditated and pre- arranged ; a majority of the members repre- sented constituencies that were interested in some one or more of the special objects to which the lottery fund was to be applied.
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The amount, to be distributed in the 20 years for which the grant was authorized, was $720,000; the bill was entitled "an act for the encouragement of Internal Improvements," and a large part of the revenue to be derived from the nefarious business, was appropriated to railroads either building or projected, in- cluding the "Maryland and Delaware Rail- road."
The bill combined many other objects as "beneficiaries," such as improving the naviga- tion of the creeks, erecting fences, granaries,
There were rumors of bribery and the use of corrupt means. The influences, whatever they were, brought to bear on a majority of the Legislature were not resisted, and the "act" was passed against the protest a few of the members, and of that class of citizens who believed "that the end would not justify the means." Of those who voted for the bill some, doubtless, believed that no immoral principle was involved, but the time had arrived when public opinion and the press in most of the States condemned lotteries as a legalized sys- tem of gambling, which under protection of this and some other States, had, by means of agents and the use of the post-office,spread a demor- alizing influence far beyond the limits of the State where the grants were made, into other communities, and the evil consequences of this "act" were justly charged upon the State of Delaware.
Among the numerous "beneficiaries," the extension of the Delaware Railroad was not overlooked. An appropriation of $106,000, payable $2,650, semi-annually for 20 years, by the State Treasurer, in the distribution of the revenue to be derived from the grant, was di- rected to be used exclusively for the extension of the road below Seaford.
The Board had not asked for aid by a lot- tery grant, but, in the words of the President, "acting as the Trustee of the fund and trusting to be reimbursed out of the installments as paid,"-on the 16th of April, 1859, authorized the issue of bonds to the amount of $40,000, called "bonus bonds," which were endorsed, as "specially charged upon any fund to be de- rived from the State not already appropri- ated." These bonds were disposed of as col- lateral for loans to be applied to the payment for work under contract, on the "extension." and a sinking fund was provided to meet the bonds at maturity, called the "extension sink-
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ing fund." Five installments of $2,650 were paid by the State Treasurer: the whole amount, therefore, realized from this appro- priation was $13,250. By a failure to pay the installment of July, 1861, when due, or within thirty days thereafter, the grantee rendered himself liable to a forfeiture of the lottery grant, and the Legislature of 1862, taking ad- vantage of this failure, though the money was subsequently paid into the State Treasury, de- clared the "act" forfeited; thus reversing the action of the Legislature of 1859, in accord .. ance with what was believed to be the public sentiment as to the pernicious policy of such schemes for raising money. Work on the "extension" was progressing rapidly, and as the Legislature had provided no means except the lottery grant, to meet the demands on the Treasury, the President was authorized, June 16, 1859, to execute a mortgage to Trustees of that part of the road, and bonds were issued to the amount of $100,000, having twenty years to run, interest at 6 per cent. per annum, payable semi-annually. Messrs. Bringhurst, Sharpe, and Ross were appointed a committee to negotiate the sale of these bonds which were disposed of at 60 per cent. of their face, a considerable amount being used in payment of the contract or as the work progressed. The Company was greatly assisted in building the "extension" by the authority given the New Castle and Frenchtown Company, to take up and sell the iron rails on a part of their rail- road not used : these were bought by the Del- aware Railroad Company and paid for in its stock. The iron was used south of Seaford, and proved to be of the best quality English railway iron, a part of which has remained un- til recently in the track.
The bridges over the Nanticoke River and Broad Creek were completed, and the rails laid to "Delmar," the new station at the Dela- ware and Maryland State line, by December 20th.
The Eastern Shore Railroad Company had put under contract the Ist section of their road, from the State line to Salisbury, so the Company was assured of the early completion of a continuous railroad to "Somers Cove," eighty-four miles from Norfolk by steamers, which in the opinion of President Harrington, "would realize the idea of a southern route of travel by the most perfect line."
Mr. Sewall's estimate of the cost of the thirteen miles of railroad, from Seaford to the State line, including the bridge over the Nan- ticoke River was "$130,000, provided contracts were made for cash." The actual cost as shown by the Treasurer's statement was $164- 073. The extension mortgage bonds ($100,- 000) issued to pay for this work were sold, as we have seen, at 60 per cent. of their face; a discount of $40,000; had the State lent its credit to the Company the bonds would have sold at par, as in a former instance, and the saving of discount would have reduced the cost of the ex- tension to less than the engineer's estimate; the Lessee had generously consented to accept this part of the Delaware Railroad under the lease, and to pay tlie interest on the mortgage loan, and to this security was added the further guar- antee of a perpetual sinking fund, to pay off the debt at maturity-such were the guarantees proposed and rejected by the State.
The length of the Delaware Railroad from Delmar to its junction with the New Castle and F. Town Railroad, measures 83-92, miles. From Philadelphia to Delmar, the distance by railroad is 125 miles, add to this "The Eastern Shore Railroad from the State line to Somers Cove, thirty-eight miles, measuring in all 163 miles by railroad and 84 miles by steamers to Norfolk, and we have the whole distance from Philadelphia to Norfolk by this route, 247 miles.
Though the Board had every reason to be- lieve that the Eastern Shore Railroad would soon be completed, they still kept in view the route by steamers down the Nanticoke River, which presented the real or fancied advantage of having the steamboat terminus within the State, at their own wharves, and under the immediate control of the Lessee. Several thousand dollars had been expended in obtain- ing the removal of the bridge over the Nanti- coke River at Vienna, before referred to, and in cutting off a point projecting into the river near the wharf.
It was understood that "the Seaboard and Roanoke Railroad Company" was building steamers for this route, and had nearly com- pleted one of them; sometime in the follow- ing year, 1860, the President reported to the Board that "a steamboat connection had been made with Norfolk, which was altogether in the hands of other parties, and though not
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hitherto conducted with much regularity, has | ment account, the completion of the Eastern added considerably to the business of the road." Soon after this the war broke out. and all com- munication with Norfolk by passenger steamers from Seaford was suspended, never afterward to be resumed.
Since 1854 the President had been greatly annoyed by a law suit brought against theCom- pany by McCullough, Lentz & Co., contractors. Under the first contract to build the road and wharves at Dona and Seaford, after the union with the upper Companies, a refusal on the part of the contractors to prosecute the work with sufficient force had given cause of dis- satisfaction, which ended in a resolution by the Board declaring the contract forfeited. The suit for damages claimed by the con- tractors had been for some time pending in the United States Circuit Court in Philadel- phia ; at length, in the latter part of 1858 a compromise was effected on favorable terins, and the contractors, on their executing a re- lease of all claims against the Company were paid $3500 and the suit was dismissed.
The Stockholders in April 1857 had passed a resolution, agreeing to apply the dividends as they accrued for two years on their stock, toward finishing the road.
The rent had been promptly paid by the Lessee, and the dividends due after January Ist 1859 were received in cash until the failure of the lottery grant, when another suspension of cash dividends was found necessary, to meet the large floating debt contracted on the faith of its being met by the appropriation from this fund. The dividends of July 1862,and January 1863, were. applied to the payment of the Company's debts; but an equivalent in stock was credited to the shareholders with the consent of the Lessee, and the dividends, thereafter, were paid in cash, subject to the deduction of the United States Tax.
As we have seen, the Delaware Railroad was completed, to the State line,just before the commencement of the war. The Eastern Shore Railroad was opened from the State line to Salisbury, Md., in 1860, leaving 32 miles to be completed. It was supposed by the managers of the Companies interested, that the United States Government would deem this safe and convenient line for the transportation of troops and army supplies to Fortress Monroe, of sufficient importance to undertake, on Govern-
Shore road to Somers Cove. In this their lopes were not realized, and this enterprise shared the fate of many others of the kind, projected at that period ; work was suspen- ded until after the war, and the road was not opened to Crisfield, its terminus, until November 1866. In 1861, the Government deeming it important to have Telegraph com- munication with the Capes of the Delaware Bay, erected a telegraph line which was greatly needed by the Company ; and extended it down the Delaware Railroad line as far as Harrington Station, and thence by the line of the Junction and Breakwater Railroad to the harbor at the Delaware Breakwater. Their wires were soon after carried to Seaford.
THE PLANTING OF PEACH ORCHARDS.
Notwithstanding the general depression in business during the early years of the war, the local travel and transportation on the Dela- ware Railroad continued to increase, and in 1864 was much larger than in any previous year; we find enumerated among the principal articles of produce transported 736,000 baskets of peaches. A sketch of "Delaware Railroad" history would not be complete without giving to this industry, so intimately connected with it, a passing notice.
The cultivation of this popular fruit for the city market had been introduced into the State from New Jersey by Messrs. Ridgway and Reeves, whose extensive orchards on their farms near the Delaware River, a few miles south of New Castle, were planted as early as 1835; their example was followed by the Rey- bolds and others near Delaware City, and their success induced a few of the enterprising land owners near Dover to engage in the business. The orchards of Henry Todd, Esq., on the fine loamy soil near the town of Dover, Dr. G. Emerson on the heavier alluvial lands near the Delaware Bay, and of Jehu Reed, Esq., on the sandy loam near Frederica, all coming into bearing before the steamboat line was opened from Dona, proved by the fine quality of the fruit produced, that any of the dry, arable soils of Kent County were admirably adapted to the cultivation of peach trees. The fruit shipped to Philadelphia at that time by sail boats was readily sold at remunerative prices.
After opening communication with the city by the steamboat line from Dona in 1847, other
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HISTORY OF DELAWARE.
orchards were planted east of Dover, and the transportation of the fruit in its season afforded an important part of the freight, and added largely to the earnings of the Company.
It was not at first believed, by the peach growers, that the products of their orchards could be carried to market by rail in the same good condition as by steamboats ; it was thought the close packing of the cars would heat the fruit, or the peaches would be bruised and spoiled by the jolting of the trains ; they therefore gave up water carriage reluctantly, and after the Railroad line was opened, efforts were made to re-establish regular steamboat communication with Philadelphia and New York from Mahon River, and other landings on the Delaware Bay. But this prejudice against the Railroad as a carrier of peaches did not continue longer than it was shown by actual experience, that by the use of the cars, which had been especially fitted up for their transportation, the fruit could be carried with perfect safety, in good condition, and with greater expediton by rail than by steamboats. The profits derived by the growers who first engaged in these shipments, were far greater than from any other products of the farm raised at equal cost : their success soon became known to the farmers and land owners on the line of the road, and in a few years peach orchards had multiplied to such an extent that it be- came a question, whether the immense product could be transported by rail in season, and delivered safely, or if delivered, such large shipments would not glut the the City market, and render the fruit valueless.
As I have said, nearly three quarters of a million of baskets of peaches were shipped over the Railroad from Delaware in 1864, to Philadelphia and New York. This was by far the largest crop that had ever been forwarded to market from this State, and as, perhaps, not more than one fourth of the trees planted were in full bearing, some estimate could be formed of the enormous quantity for which transporation would have to be provided in future years.
SUITS BROUGHT AGAINST THE LESSEE BY PEACH GROWERS.
The capability of the road was fully tested at this time, the season for shipment only last- ing about six weeks, and at one period of the ripening of a large quantity of fruit in ex- 22
tremely hot weather, the Company being em- barrassed for want of the requisite number of cars, in consequence of a large and unexpec- ted demand on their rolling stock by the United States Government for transportation of army supplies, they were unable at once to accommodate the peach growers, and a part of the fruit was left over night at the stations on the road, and a considerable quantity was damaged by exposure and delay. As prices had been well maintained, this was a great disappointment to the owners of the peaches, who claimed damages of the Lessee of the road for the loss sustained. On the part of the Lessee, it was shown that the growers had estimated the crop before it ripened at little more than half the number of baskets de- livered, and that the Company had for the first time, this season, effected an arrangement for the peach growers, by which, in connection with three other railroads, direct communica- tion had been opened with New York ; and that even with the disadvantages attending the first year of this experiment all the fruit would have been safely delivered, if the crop had at first been fairly estimated, and timely notice given to provide for its transportation.
It would have been wise to have settled these claims out of court; but suits were insti- tuted by some of the peach growers against the Philadelphia, Wilmington & Baltimore Company. They came to trial in the following year, and the damages awarded by the juries in the "peach suits" were, in some instances, so exorbitant as to surprise even the plaintiffs. The Company settled the claims of other parties by compromise, thus ending the contest. LEGISLATION IN 1865.
During the session of the Legislature of 1865, renewed efforts were made to influence that body to grant aid for building railroads to connect those already projected in this State and in Maryland, with the harbors on the Delaware Bay and River. This action was deemed to be hostile to the interests of the Delaware Railroad Company. The Board of Directors requested the president to lay before the Legislature the remonstrance of the Company presented at a former session against such grants, and further resolved, "That the building of these side lines, except the Junc- tion and Breakwater Railroad, will not only tend to impair the profits of the company, but
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HISTORY OF DELAWARE.
will also impair the value of its stock and se- [ had always been considered an important part curities, by endangering its lease with the of the system of railroad improvements in the State, and as especially needed in opening, by rail, easy communication between the cities of Philadelphia and Wilmington, and the Dela- ware Breakwater. Philadelphia Wilmington & Baltimore Rail- road Company, as well as its ability to con- tribute its share of the tax which the Legis- lature has imposed on passengers." The Legislature paid little or no regard to the Though the Delaware Railroad had not shared the benefits. derived by other railroads more directly in the line of Government trans- portation during the war, which had proved a profitable source of their revenues, yet the local business had steadily increased, and now that peace was restored to the country the Board was looking forward to large accessions to the earnings of the road from the general revival of business. Company's remonstrances ; partaking largely of the the extravagant spirit that prevailed throughout the country after the war, and started into life so many railroad schemes of no practical importance; they granted charters to no less than three new companies, with the right to connect with any other railroad upon such terms and conditions as should be agreed upon between the companies so uniting, "with the privilege of extending their roads to navi- DEATH OF PRESIDENT HARRINGTON. gation on the Delaware Bay."
At this time the people of the State were heavily taxed for the payment of interest, and for the gradual reduction of the "war debt", and the positive exemption from taxation by the terms of the charter, did not relieve the Railroad from being required, indirectly, by State enactment to pay into the Treasury, as taxes levied upon the Lessee, a large portion of the annual revenues of the State.
The fear of "State debt " seems to have sub- sided as the means were discovered for its ex- tinguishment. The Legislature at this session (1865) granted substantial aid to the Junction and Breakwater Railroad Company to com- plete their road to Lewes. The State Treas- urer was directed to cause bonds of the State to be issued to the amount of $400,000 and to deliver to the Directors of the Junction and Breakwater Railroad Company said bonds, to the amount of $352,000 in four instalments, as subscriptions to the capital stock of the com- pany should be made and paid in, in amounts "of $50,000 until the stock subscriptions should amount to $200,000," when he was di- rected to deliver the last instalment of said bonds. As security for the above loan, "the State required a first mortgage for four hun- dred thousand dollars on the railroad and its appurtenances, and that the forty-eight thou- .sand dollars of bonds retained by the State Treasurer from the loan be sold, and the pro- ceeds applied to the payment of interest for two years on the Company's mortgage."
This act of the General Assembly secured the completion of a connecting road, which
Near the close of the year 1865, when these prospects were brightest, the Company lost their President,and the State one of its most distin- guished citizens in the death of Chancellor Harrington. For several years he had been in feeble health; but with his usual energy and courage he continued to give strict attention to the duties of his high Judicial position, and had by no means relaxed his interest in the improvements that were making on the line of the road. Judge Harrington had held the office of President of the Company from the date of its organization, except for a few weeks in December, 1852, when in deference to the opinion frequently expressed that a "Cor- poration office was regarded as conflicting with his judicial position," he resigned. The vacancy was filled by the appointment of the Rev. T. B. Bradford, a member of the Board, until the annual meeting of Stock- holders January 10, 1855, when Judge Har- rington was unanimously re-elected.
FILLING VACANCIES IN THE BOARD.
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