USA > Delaware > Historical and biographical encyclopaedia of Delaware. V 1 > Part 30
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Soon after the death of the President, a meeting of the Board was called and appropri- ate resolutions were passed, expressing their high appreciation of his services in the lead- ing part he had taken from the beginning, in an enterprise which had proved to be of such great public importance, and as a record of their high estimation of the talents, virtues, and integrity for which he had been eminently distinguished. The Board at this meeting filled the vacancy by unanimously electing Samuel M. Felton Esq., President of the Com -. pany. Mr. Felton had one year before resigned
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171
HISTORY OF DELAWARE.
the office of President of the Philadelphia, Wil- | of new improvements, and the differences in mington and Baltimore Railroad Company on account of ill health, from which he was now happily recovering.
Since the re-organization of the Board of Directors in 1853, few changes had taken place in its members. Hon. E. W. Gilpin, in accepting the office of Chief Justice, tendered his resignation as a Director of the Company in 1857, and was succeeded by Jesse Lane Esq., who declined a re-election in 1859, and Joseph Bringhurst Esq., was appointed in his place. Vacancies, caused by the resignation of Ex-Governor W. W. Ross, in 1863 ; and by the death of Albert Curry Esq., in 1864, the latter having succeeded Rev. Thomas B. Brad- ford in 1857, were filled by the election of Jacob Moore, of Georgetown, and Manlove Hayes of Dover.
The following Directors were chosen at the annual meeting of Stockholders, January 1I, IS66. Samuel M. Felton, President, Isaac Hinckley, Andrew C. Gray, Charles I. DuPont, Jesse Sharpe, Joseph Bringhurst, Henry B. Fiddeman, Manlove Hayes, Isaac Jump, Al- exander Johnson, William W. Ross, Charles Wright and Jacob Moore.
At this meeting, President Felton submitted a brief report to the Stockholders, giving the following summary of the earnings and ex- penses for the year ending October 31st, 1865, to wit :
EARNINGS.
EXPENSES.
From Passengers. $173,507.13
Freight 137,552.99
Express. 5,332 02
U. S. Mail. 7,381.86
$323,774.00
Loss to Lessee
2,715.82
$326,489.82
The Sinking Fund amounted to $52,549.68. Treasurer Allee's balance sheet of January Ist, 1866, shows a considerable increase in the con- struction account since the road was opened in 1856, which will be seen by referring to the financial statement of that year :
Delaware Railroad Co., Jan. Ist, 1866. Cost of construction of 84 miles of railroad, including the extension to the State line :
DR.
CR.
Construction. .
$1,561,971.76 Capital Stock. $ 594,261.06 Bonds, including Exten- sion Mortgage Bonds. 912,251.00 Sundry amounts from other sources. 55,459.70
$1,561,971.76
· $1,561,971.76
The construction account had been con- siderably augmented by charging up the cost
weight of the new iron rails used in the track to replace the old 50 pound rails first laid, and which were found to be too light for the heavy freight trains required to move the crops.
BRANCH RAILROADS.
The Railroad Companies on the eastern shore of Maryland had resumed work, and were making rapid progress toward the State line. three of these Companies had solicited aid of the Delaware Railroad Company to assist them in completing their roads, and it was deter .. mined by the Board of Directors to render aid so far as to construct, at the expense of the Company, the parts of the connecting railroad lines located within the limits of Delaware. The Board also consented to accommodate the town of Smyrna by building a short branch railroad from the station into the town. The business men of the place had organized a com- pany to build this branch for the want of which they had suffered great inconvenience. They had lost the advantage of a proposed line of survey running nearer the town, when the road was located; by not giving sufficient en- couragement to the Company to warrant the additional expense, which would have been incurred by changing the direction of the line for their accommodation.
In June 1866, Messrs. Felton and Hinckley, (the Presidents of the two roads,) were author- ized to contract for the construction of the branch Railroad, from Smyrna Station, (now Clayton,) to the town of Smyrna, a distance of one and a half miles. And at a subsequent meeting, December 20th, full authority was given the President, with the consent of the Lessee, "to locate and construct a single track road, from Townsend Station westerly to the State line," to connect with the "Kent County (Maryland) Railroad ; and to issue stock of the Delaware Railroad Company, to an amount sufficient to pay for building the road." This branch was afterward extended to Massey's about four miles within the limits of the State of Maryland, at the junction of the Kent County Railroad, with the Queen Anne and Kent Railroad.
A branch Railroad from Seaford to the State line, to connect with the Dorchester and Delaware Railroad, was also authorized June 24th, 1867, and to further assist the last mentioned Company, in the building of their
Operating Roads .. . ... .$241,587.24
Interest on Liabilities and
dividend on Stock. 92,902.58
$334,489.82
Less value of old rails. 8,000.00
$326,489.82
172
HISTORY OF DELAWARE.
road from the State line to Cambridge. The | sidered so objectionable that preference was Board of Directors of the Delaware Railroad given to the route by the "Old Bay Line" of steamers ; which, though less expeditious, gave better opportunities for rest before reaching Baltimore, where close connection was made with the early morning trains. Company, with the consent of the Lessee, loaned to the Dorchester and Delaware Rail- road Company, a certificate for 2,500 shares of Delaware Railroad stock, to be used as collat- eral . in obtaining money to prosecute the work. The Dorchester and Delaware Rail- road Company, deposited with the Delaware Railroad Company their bonds for $100,000, as security for the loan. The stock thus issued was carried on the book of the Delaware Railroad Company until 1873, when the bonds were redeemed and the certificate of stock can- celed.
Though separate charters were obtained for each of the branch Railroads, above men- tioned, they were built under the auspices of the Delaware Railroad Company, and the cost of their construction paid by the sale of the Company's stock. When completed they were included in the lease by consent of the Lessee as constituting a part of the Delaware Rail- road.
At the annual meeting in January, 1870, President Felton had the satisfaction to report to the Stockholders the completion of the three branch roads referred to, as well as of the Junction & Breakwater Railroad to its terminus at Lewes, and the Maryland & Dela- ware Railroad, from Smyrna station to Easton, Md., carrying into practical effect the first in- tention of making the Delaware Railroad the "trunk line" for all the Railroads on the Peninsula.
Soon after the completion of the Eastern Shore Railroad an attempt was made to estab- lish a through route to Norfolk, and in 1867 an express train was run from Wilmington to Crisfield, 1353 miles, in connection with a daily line of fast steamers.
The time made between Norfolk and New York by this route was from 33 to 43 hours shorter than by any other; but to run in close connection with the Southern roads termina- ting at Norfolk, it was found necessary that the steamboats should leave that harbor at about 7 o'clock in the evening, and the trip to Cris- field requiring but 7 hours, it was near mid- night when the passengers were transferred to the cars. The inconvenience of this arrange- ment, by which travelers coming North were disturbed at an unseasonable hour was con-
The Southern railroads entering Norfolk were operated in the interest of the competi- tors of the "new line," and as no better arrangement for passengers could, under the circumstences, be expected, after continuing the experiment for a year or more at consider- able loss, in 1868 the steamboats and fast trains were withdrawn, and the through route to Norfolk was abandoned, except as a freight line.
LOSS TO THE LESSEE.
It was found by the Lessee in operating the Delaware Railroad that the gross earnings, after paying the operating expenses, some- times exceeded, but more frequently fell short of paying the rent. The great value of the road to the Lessee in adding to the traffic and consequently to the revenues of their main line was fairly acknowledged and highly appre- ciated; but the question above referred to had given rise to a difference of opinion between the two Boards, as to the proper mode of adjusting this account under the contract.
The following extract from the President's report of 1869 presents the question at issue and the manner in which it was settled, to wit:
"The question how to treat the loss to the Lessees in operating the road arose some time since,-the Dela- ware Railroad contending that each year was to be con- sidered by itself, without reference to any other year ; that if there was a loss it was to be borne by the Lessees, while if there was a gain it was to be divided equally be- tween the Lessee and the Lessor. The contract leaving the matter in doubt as to its legal interpretation, it was, after much discussion, agreed to leave the decision to Chancellor Bates and the President of the Philadelphia and Reading Railroad. The referees did not agree as to the legal construction of the contract. They were then asked to decide the matter upon its equity. Here they also disagreed as to the manner of making up the losses to the Lessee ; one contending that the whole surplus should be credited to the loss account till it equaled the losses, without interest on either side ; and the other con- tending that only one-half of the surplus should go to the credit of losses, while the other half should belong directly and wholly to the Lessee. In this dilemina the President of the Lessor and the President of the Lessee agreed to divide the difference between the referees, to wit : that one-quarter of the surplus should go to the Lessee and the other three-quarters should go to dimin-
173
HISTORY OF DELAWARE.
ish losses, without interest on either side, till said three-| quarters shall equal the losses, and then that the surplus shall be equally divided, so long as there shall be any surplus, annually. Should losses again occur at any time during the lease, they will be treated in the same way as those now and heretofore existing."
RESIGNATION OF OFFICERS.
In 1870, E. Q. Sewall and A. Brown Esq., the Assistant Superintendent and Freight Agent, respectively, in immediate charge of the construction and transportation on the Delaware Railroad under the Lessee, resigned the offices they had held since the road was opened, to accept more responsible positions in another company. Mr. Sewall had been connected with this Company as Engineer and Assistant Superintendent for fourteen years, and his valuable services, in both capacities, had been frequently acknowledged by the Board. Mr. Brown had also the entire confi- dence of the Company in his Department. From this time forward the road has been operated as the "Delaware Division' of the Philadelphia, Wilmington and Baltimore Rail- road, under the immediate control and man- agement of H. F. Kenney Esq., Superintend- ent, with Isaac Mills Esq., as General Agent.
In March of this year, ( 1870,) the Company was deprived of the services of Mr.Allee, Sec- retary and Treasurer, who was disqualified by a severe stroke of paralysis, from performing his offical duties, and in May following the Board appointed Mr. Hayes (one of the Directors of the Company) to fill these offices tempora- rily, and at the next annual meeting he was elected Treasurer and Secretary of the com- pany. Mr. Allee being permanently disabled, the Board passed resolutions "tendering to him their thanks for his long and faithful ser- vices rendered the Company, and their sympa- thies with him on account of his illness."
IMPROVEMENTS AND REPAIRS-DAMAGE BY THE GREAT RAIN STORM.
The improvements on the line of the Del- aware Railroad and its branches under the lib- eral policy and admirable management of the Lessee, were more and more apparent every year. Renewals and repairs, wherever needed, were supplied without stint. As an evidence of this, 40,265 new cross-ties and 698 tons of railroad iron were, in 1870, used in the track now being re-laid, with 57 pound rails, and fish-joint fastenings-a great improvement over the old superstructure. To make the im-
provements referred to, and afford ample ac- commodations for the increased and growing business of the road, the Company found it necessary to acquire by purchase additional grounds at Clayton, Smyrna, Dover, Wyoming, and several of the less important places. Sidings were lengthened, and new ones laid at many of the stations, in anticipation of heavy peach crops.
The planting of peach trees and other fruits, on a large scale had extended far down the Peninsula, and on the branch roads, wherever the soil was adapted to their growth.
In the month of August 1873, during the season of the heaviest peach shipments,a local rain-storm, unprecedented in force or rain-fall, occurred in that part of New Castle county near the Chesapeake and Delaware canal, re- sulting in great damage to the road. Twenty- four culverts,many of them built of stone, were washed out between St. George's Station and Middletown, and a torrent of water from the adjoining slopes, and from the canal reservoir, caused by the breaking of its banks, overflow- ed the low ground above the railroad bridge and rushing with irresistible force against the north abutment, carried it away and utterly demolished the embankment, in that place 30 feet in height and 200 feet in length. This disaster stopped the running of the trains for seven days, during the height of the season for fruit transportation, and to the loss and damages to the Lessee by the flood, was to be added the diminished receipts from freight, on this perishable commodity amounting to. many thousands of dollars.
The Officers of the road with a corps of well trained men soon erected a superstructure of trestle work, to replace the embankment at the canal, and repaired or bridged over the breaches in the road ; and in a shorter time than was thought possible from the extent of the damages, the track was put in good order for trains. This is the only interruption to transportation, for more than a few hours at any one time, from accident or disaster of any kind, to be recorded during the twenty-five years of the operations of The Delaware Rail- road.
INSOLVENCY OF CONNECTING RAILROADS.
Some of the railroads on the Peninsula connected with the Delaware road, were en- cumbered with debt ; and it was not improba-
174
HISTORY OF DELAWARE.
ble they would be sold for the benefit of their | Agent, Mr. Mills, and the employees of the Stockholders or Bondholders at a period more Company. or less remote "and in order that the Directors FRUIT TRAFFIC. might have authority to acquire, by purchase, such roads if their acquisition was desired by the Board," at the Stockholders Meeting .January 8th 1874 full power was given the Di- rectors to negotiate and complete the purchase of any such roads, and to arrange a mode of paying for the same without further action of the Stockholders, but with the consent of the Lessee of this road"
RENEWAL OF LEASE.
It may be proper here to state that notice was duly given by the Lesee of the road, that in accordance with the provisions of the orig- inal contract they had "elected to renew the lease of the Delaware Railroad for twenty one years longer, at the expiration of the first term, May 4th 1876."
IMPROVEMENTS ON THE LINE OF THE ROAD.
The aspect of the country near the Dela- ware Railroad had undergone many important changes in the twenty years since the opening at Seaford. During that period, and more especially in the years of active business pros- perity that succeeded the war, and before the financial disasters of 1873 overtook the country and paralyzed business, improvements were everywhere to be seen springing up in town and country on the line of the road. Well cultivated farms had succeeded to the dense forests and jungle that stretched for miles to- gether on the borders of the roadway when it was first opened. New villages had grown up at Clayton, Wyoming, Felton, Harrington, Farmington and other principal stations. Tasteful residences, public schools, academies and churches in the larger towns presented in- ducements to people seeking new homes, and brought many settlers to their neighborhood. The substantial and attractive appearance of the new brick Passenger Depots and grounds, ornamented with plants and flowers, which were now to be seen at many of the stations, showed the traveler that the managers of the railroad were performing a commendable part in thus educating, cultivating and refining the tastes of the people. In all the plans for im- proving the Delaware Road, the Presidents of the two Companies were in full accord, and Superintendent Kenny's instructions were promptly and ably carried out by the General
The plantations of small fruits as well as of peaches, which everywhere abounded, proved to be a great blessing to the people of the Peninsula in the period of the "Hard times." The ready money returned from their sale in the cities was distributed largely for labor among all classes in the country, and the operations of numerous fruit canning, and evap- orating establishments, gave employment to many hundreds of women and children.
The quantity of fruit shipped by railroad from year to year varied greatly ; the crop of peaches, especially, was subject to disaster, by frost and other climatic influences, as well as from the attacks of curculio. Sometimes the fruit was only destroyed in certain sections of the country, leaving enough unharmed at other places to supply the markets; at other times, perhaps, but half a crop was left ; and if if it so extended throughout the peach grow- ing region, the returns from sales would prove more satisfactory than from a full crop by which the markets would have been glutted with inferior fruit and the prices consequently low. The heaviest crop of peaches ever grown on the Peninsula or shipped over the Delaware Railroad was in 1875. . Conferences were held between committees appointed by the fruit growers, and the railroad authorities, to arrange for the shipment and distribution of so large a crop, estimated at five or six mil- lions of baskets.
The schedule of freight charges, embraced all the large cities within the distance to Chi- cago and Cincinnati in the West, and to Bos- ton at the East. The extent of the shipments will be shown by the following items from President Felton's report of 1876.
"The total number of baskets of peaches sent to market over the Delaware Railroad was 4,536,751, and of car loads, 9,072. The highest number of baskets shipped in one day 209,000, and of loaded cars, 418;" beside peaches, 905 car loads of berries and other fruits were sent to market in this prolific year.
The season for fruit shipments was short ; for peaches, not exceeding six weeks; the moving of this crop requiring the use of an unusually large number of cars, as those sent to distant places could not be unloaded
175
HISTORY OF DELAWARE.
and returned in less time than from two to gage bonds when they matured, January Ist, four days. All the arrangements were com- 1880. plete, and neither accidents nor delays hap- pened to the trains following each other in rapid succession.
·
The entire business of the season was suc- cessfully accomplished, but unfortunately for the profits of the Delaware Railroad Company, the greater part of the crop was grown in the northern part of the State: the haul was short, and its portion of the earnings comparatively small.
FINANCIAL AFFAIRS.
The results of the Centennial year, 1876, fell short of the expectations of the Company. The gain in the transportation of passengers, as compared with the previous year was $11,762 ; over 123 per cent .; but the loss in freight, &c., was $29,777 ; nearly 28 per cent. The loss in freight earnings this year was in consequence of a light peach crop, and a con- siderable reduction in freight charges.
The first mortgage and guaranteed loans of the Company amounting to $600,000 became due July Ist, 1875; and the Board provided for the payment of the bonds by authorizing a new 6 per cent. loan of $650,000 payable in twenty years, and secured by a mortgage on the main line of the Delaware Railroad and on all its branches.
The Lessee of the road guaranteed the pay- ment of the principal when the bonds mature, and interest semi-annually as it accrues. These bonds are convertible into the capital stock of the Company, or can be registered at the option of the holders. The mortgage was made to "The Fidelity Insurance Trust and Safe Deposit Company," of Philadelphia, in trust ; and that Company was constituted the agent of the Delaware Railroad Com- pany in negotiating the new loan, and in re- deeming the two classes of bonds above refer- red to, as well as for registering and trans- ferring the bonds of the new loan.
The accumulations of the Sinking Fund January Ist, 1876 amounted to $183,559.40. from this sum $175,100 was set a side to pay the State loan of $170,000 with interest to July Ist 1876, when the bonds matured. It was estimated this would leave a balance of about $26, 500 to be applied with its accumu- lations to the payment of the extension mort-
To the cost of the Delaware Railroad has been added that of the Townsend Branch to Massey's Junction: the Dorchester Branch from Seaford to the State line: and the Smyrna and Smyrna Station Railroad, as well as the cost of the improvements before referred to, and also the difference in price between steel and iron rails on eleven miles of track, where steel rails have been substituted for iron.
These additions to the construction account have been paid for by the issue and sale of the Company's stock.
The branch Railroads when completed were accepted by the Lessee, but underlet to the. companies or parties operating the. connecting roads.
The Dorchester and Delaware, and the Kent County Railroad, as well as the Chesapeake and Delaware, extend to the navigable waters of the Chesapeake Bay: and the Delaware Railroad has been subjected to the rivalry and competition of river navigation, in obtaining the traffic over these lines.
SEASHORE RESORTS.
The Junction and Breakwater Railroad with its extension to Rehoboth, and connecting roads from Georgetown to. Franklin City, on Chincoteague Sound, have passed into the hands of the Old Dominion Steamship Com- pany, and is operated in connection with a line of steamers from the Delaware Breakwater to New York.
A popular sea shore resort. has been estab- lished under the auspices of a Methodist Association at Rehoboth beach. And another sea side resort is located further South on a strip of beach between Assateague Bay, or Sound, and the Atlantic Ocean, on the Mary- land sea-coast, called "Ocean City". It is reached by the Eastern Shore, and the Wico- mico and Pocomoke Railroad and is about 120 miles from Wilmington. The travel to and from these sea side resorts, over the Delaware and connecting roads, has afforded a considera- ble addition to their annual revenues.
CONCLUSION.
In concluding this sketch, the writer has presented a statement showing the cost of the Delaware Railroad, its branches and im- provements, to the Ist of January, 1880, to which has been added the length of the
success of the Road. Such publications cannot fail to be of great interest to the citizen and of benefit to the Corporation. We regard the arti- cle as ofgreat literary as well as historical value.
Table showing the proportion of Revenue to the Delaware Railroad Co. of Fruit Traffic for 13 years, ending Oct. 31, 1879, as reported by the Lessee. PHILADELPHIA, WILMINGTON AND BALTIMORE RAILROAD COMPANY.
Season.
Car Car Loads Loads Peaches Berries.
Weight Tons.
P., W. & B. R. R. Co. Proportion of Revenue.
Southern Division.
Delaware R. R. Co. Proportion of Revenue.
Total Revenue.
1867
2056
17,049
$47,944 31
$23,899 88
$66,666 00
$138,510 19
1868
23
20
206
694 76
264 57
665 28
1,614 61
1869
4019
182
34,220
107,670 25
41,473 10
81,727 37
230,870 72
1870
2707
282
22,783
60,085 90
29,078 63
70,228 93
159,393 46
1871
5004
313
39,565 38,466
85,858 42
39,074 24
71,283 43
196,216 09
1873
2853
688
32,560
72,170 65
29,358 86
116,890 62
218,430 13
1874
1266
714
18,102
44,206 20
16,292 44
49,166 80
109,665 44
1875
9072
905
92,068
130,444 64
63,875 85
122,207 73
316,528 22
1876
2117
882
24.455
49,931 25
23,257 64
52,800 55
125,989 44
1877
4003
638
37,109
72,639 76
34,575 23
94,429 13
201,644 12
1878
869
771
13, 11I
29,031 95
11,916 06
44,972 22
85,920 23
1879
4327
646
39,782
85,098 04
38,465 19
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