USA > New York > Rockland County > History of Rockland County, New York : with biographical sketches of its prominent men > Part 24
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In 1823-4 Mr. Lord wrote the prospectus of an edition of Lemprieres Biographical Dictionary and about eight hundred original American articles. This was published by Harper Brothers, in 1825, in two volumes, octavo.
In 1825, Mr. Lord contributed to the Christian Spec- tator an article on the Holy Scriptures.
In 1827, the degree of A. M. was conferred on Mr. Lord by Williams College, as had previously been done by Dartmouth, and nearly forty years later (1866) the University of New York added LL. D.
The subject of currency attracted Mr. Lord's atten- tion while abroad in 1817-18. After the peace of 1815, of British manufactures, for which in part they took pay in raw materials and for the balance carried off their money. This systematic drain kept Northern Europe poor, and discouraged all attempts to manufacture what they could not pay for in iron, hemp, tallow, and other superfluous products. On the quay at Cronstadt hun-
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HISTORY OF ROCKLAND COUNTY.
dreds of crates of earthenware and crockery had just ber of banks increased from 90 to 310, their circulation been landed from British ships. On inquiring how they from about ten millions to about forty millions, their de- posits from fifteen to two hundred millions. paid for such supplies, Mr. Lord was told that those who brought them took enough of their products for ballast on the voyage home; for the rest, when sold, they got NEW YORK AND ERIE RAILROAD. exchange or cash. He asked: " Can you not make these On the excursion to Ohio, in 1825, made by Mr. Lord, Governor Clinton, and Mr. John Rathbone jr., as above described, Governor Clinton repeatedly alluded to events in the history of the Erie Canal, and to the deep interest which he had long felt on the subject of an avenue from New York to Lake Erie through the southern tier of counties. His father, General James Clinton, with Gen - eral Sullivan, as far back as 1779, after an expedition against the Indians on the Chemung and Susquehannah Rivers, had recommended and applied to Congress to authorize and to assist in the construction of an " Appian Way " through those counties. Governor Clinton inher- ited his father's zeal upon the subject, and on the pas- sage of the Act, in 1817, authorizing the Erie Canal, he gave assurances to those counties, that on their cooperation in the construction and completion of the canal, an avenue as nearly equivalent as possible through the southern tier of counties from the Hudson to Lake Erie should be constructed at the expense or with the aid of the State. articles of constant consumption for yourselves and keep your money?" They answered: " If we attempt that, the English will send a double supply, overstock the market, put the price down, and effect our ruin." These and similar observations soon enabled Mr. Lord to fully com- prehend Free Trade, as the British teach the science of it to other nations; i. e., buy where for the time you can buy the cheapest; as to pay, that will take care of itself. " If you will sell raw materials cheap enough, England will take them; if not, she will take your money." In · Denmark, Sweden, and Russia the currency was very scarce, interest was high, negotiations difficult, and worse times predicted. On reaching home, Mr. Lord found such was the case here. We were on the eve of a panic and revulsion, which culminated in the course of the next year. Such was our experience every few years, and invariably from a drain of specie, the basis of cur- rency, to pay balances for imports exceeding our exports. Mr. Lord called attention to the subject at Washington, in 1819-20-21 and afterwards, and exerted a powerful influence in bringing about the American system of pro- tecting her home industries.
To redeem this pledge he called the attention of the |State Legislature to the subject in 1824 and recom- mended a survey for a State road over the route in question. A survey was made and repeated in March, 1825, but it was of a character to discourage all further effort. It was evidently intended to be adverse to the southern counties; did great injustice to the topography of the country, was impracticable, and for a time checked the hopes of the people.
In 1827-28, the system of banking in this State at- tracted Mr. Lord's attention. It had run down and de- manded revision, and in 1828-29, he wrote and pub- lished a volume entitled " Credit Currency and Banking." This work set forth the principles of credit and currency, pointed out the defects of the existing banking system, and recommended, in detail, the system adopted in 1838, Mr. Lord listened to Governor Clinton's views, became interested, enlisted and committed himself to assist in carrying the work into effect. In October 1826, a con- vention of delegates met at Newburgh in relation to the survey and to devise a plan of proceedings, and called a meeting in New York at which the Mayor presided. William Paulding, Garret Storms, Pierre Van Wyck, Peter Sharp, Samuel St. John, Henry J. Wycoff, and Mr. Lord were appointed delegates, all of whom attended the con- vention, reviewed all the previous proceedings, recom- dress to the Legislature, and appointed committees of correspondence in the counties, Mr. Lord's office being the headquarters. in the State of New York and afterwards in several other States, known as the "Free Banking System." By this system, banks were required to deposit with the comp- troller, or other State officer, bona fide securities (Stocks of the United States or of this State) in pledge as secu- rity for the same amount of circulating notes, so as to render the notes absolutely secure to the holders; to re- ceive their notes from the State officer who held the secu- rities, (the plates being held by him); to issue and circulate no other than the secured notes; and to publish the mended certain measures, published a report and an ad- amount of notes so received in exchange for said United States or State bonds, and the amount in circulation weekly.
At the session of the Legislature of 1829, Mr. Lord's Attention was soon turned to the question of a canal [over the entire route, pamphlets were published, surveys of parts of the line were made, attention was aroused and confidence inspired. The subject of railways began to be talked of. In 1828 other projects were abandoned and attention turned to that of a railway; but the sudden death of Governor Clinton during the session of the Leg- islature that year, checked and postponed their action for some time. In 1829, a pamphlet recommending a rail- way over the whole route was published and widely cir- views were advocated; but the political managers then in power had further use for the old monopoly, and what was termed the "Safety Fund System " was enacted. This system failed and became intolerable in 1837, and in April, 1838, the Legislature adopted the system of se- cured notes and free banking, as originally advocated by Mr. Lord. It worked well for twenty-five years, and until it was suspended by the present National Bank System. The bank note currency was uniform, ample, and perfectly secure to those circulating it. The num- culated. In 1831, on application to the topographical
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GENERAL HISTORY.
bureau at Washington, Colonel De Witt Clinton of the Engineer Corps (son of the Governor), was detailed to conduct an experimental survey of the route, which he pronounced practicable and for the most part very favora- ble.
In the autumn of 1831, Mr. Lord published a notice of application to the Legislature at its approaching ses- sion, for an Act incorporating " The New York and Erie Railroad," to construct a railway from the city of New York through the southern tier of counties to Lake Erie, with a capital of $10,000,ooo, to be organized when half a million dollars was subscribed. A charter was drawn up by Hon. John Duer which was passed in April 1832, with such amendments, however, as marked the hostility of the central parts of the State, and of the then prosperous population on the route of the canal. By these amendments eighty commissioners were appoint- ed from different parts of the State and the whole $10,- 000,000 were to be subscribed prior to an organization.
These and other provisions were designed and ex- pected to be fatal.
By the charter the road was to pass from the city of New York along the east shore of the Hudson to a point opposite Rockland county. It was expressly, and on pain of forfeiture, prohibited from being connected with any road leading into New Jersey or Pennsylvania. It being impossible to get eighty commissioners or a ma- jority of them together, and to get a subscription of ten millions, a delay of a year ensued until 1833, when an amendment was passed reducing the number of commis- sioners, and requiring one million (instead of half a mil- lion) to be subscribed. The commissioners met in July and received subscriptions tor one million, and on the 9th of August the New York and Erie Railroad Com- pany was organized, and Mr. Lord was appointed presi- dent.
In the preceding year application was made by Mr. Lord to the President of the United States for a survey by the Engineer Corps, which was in part complied with. Colonel Clinton was detailed to make a partial survey, which he did through Rockland, Orange and Sullivan counties, the expense being met by contributions in those counties.
At Mr. Lord's suggestion it was agreed, before expend- ing any of the capital subscribed, that a committee, of which he was chairman, should solicit from the people along the route donations of land for the roadway, and from large proprietors donations of land to the company, and also to apply to the Legislature for pecuniary aid for a through survey. Grants for the road were made on a large portion of the line; 50,000 acres of land from the purchasers of the Holland Land Company's land; 2,000 acres from the purchasers of land in Dunkirk; and various smaller donations ( all conditional that the road should be constructed within a period which proved too short ); the whole of which were valued at not less than $2,000,000. At the beginning of 1834 the Legislature granted $15,000 for a survey. Judge Benjamin Wright was appointed Chief Engineer. He accomplished a sur-
vey of the whole line, and made his report to the Legis- lature with maps, profiles. and estimates, in January, 1835.
The company was now ready to get a further sub- scription, and commence the construction of the road. Having for about ten years devoted much of his time, first to the project of a State road, and then to this sub- stitute, and been at great expense, Mr. Lord was anxious to withdraw, and leave .the execution of the work to others.
He therefore proposed to the leading merchants and [ bankers of the city to resign and relinquish the whole affair to them, free of charge, on condition that they would subscribe the necessary capital to carry the object into effect. This was acceded to, and the necessary ar- rangements and changes were made in February, 1835. The office of president was transferred to Mr. James G. King; but as the affairs, correspondence, and details of the concern were better known to Mr. Lord than any one else, he consented to take the office of treasurer for a time. An application was immediately made to the Legislature for a State loan, but it failed, nominally be- cause the company had as yet expended nothing. Books for further subscriptions were opened in April, when the capital was increased to $2,382,100.
An amendment to the charter was passed, authorizing the Directors to commence their work at any point on the interior of the line, and 40 miles on the Delaware River were located and put under contract. Mr. Lord remonstrated against this, and urged its impolicy in every respect; predicted that they would lose the confi- dence of the stockholders and that they would fail. But all arguments were unavailing and Mr. Lord resigned. Two members of the board, Messrs. Gould Hoyt and Elisha Townsend, also resigned.
Near the close of 1836 the company broke down, and suspended work on the Delaware section, which was never resumed; confidence was gone. In December they called for an instalment of two and a half dollars on the stock, to settle the contracts, which was paid on less than half the shares subscribed. In 1836 a loan of $3,000,000 was granted by the State, but with such conditions that no part of it was available. Near the close of December a fire occurred in the business part of the city, which crippled many of the stockholders. The board became desperate, and at the election in October, 1837, refused the votes of those stockholders who had not paid up the instalments, so as to prevent others from being elected, and concluded to abandon the undertaking unless the Legislature assumed it or granted immediate relief.
At the session of 1838, Mr. Lord went to Albany to obtain some measure of relief. A bill was passed, au- thorizing an issue of $100,000 of the State loan against every like sum paid up by the company, on condition that the company first put under contract ten miles of the road from' Piermont west, and ten miles from Dun- kirk east, immediately after which, on the earnest solici- tation of the board, Mr. Lord was re-elected a member. The contracts on ten miles at each end were let, and
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HISTORY OF ROCKLAND COUNTY.
soon after he proposed to the board to obtain new sub- scriptions from Rockland and Orange counties, sufficient with a corresponding amount of the State loan to con- struct the road from the west end of the ten miles then under contract in Rockland, a distance of thirty-six miles, and to make contracts which should be suspended if the required instalments were not duly paid. The company were to issue special certificates for this stock, entitling the holders to interest on it, out of the earnings of this part of the road when put in use, until the whole road was completed to the Lake. This was agreed to, and Mr. Lord was empowered as Commissioner to carry it into effect, and soon after to extend it several miles the law, but it proves on the contrary, that they are just- ly entitled to the confidence which the Legislature has heretofore reposed in them. Instead of being liable to censure, the company is entitled to approbation." Again, " The committee is constrained to say that this com- pany deserve the encouragement and liberal support of the Legislature." (Assembly Doc. No. 284 of 1841). Nothing could be further than this re- port, from satisfying the unscrupulous and mercenary enemies of the road. Their purposes and hopes were disappointed; and at the close of the session they pro- cured the appointment of a committee avowedly hostile, with instructions to sit during the recess, and report to further to Middletown. It was a complete success. The the next Legislature. That committee occupied nearly road was finished and opened for use in 1841. six months in their investigation. They examined all the minutes of the Board of Directors, all the books of fidence of the people further west. Mr. King resigned | accounts, the vouchers, the contracts, the correspondence and documents of every description; and examined wit- nesses at every town and village on the route to Dun- kirk. Their report, with the testimony. &c., forms an octavo volume of nearly 700 pages. The result was as hamton to Hornellsville were put under contract, and the conclusive a vindication of the company as that of the
The success of this plan of operations restored the con- and withdrew from the board with his friends, and Mr. Lord was re-elected president, October 3d 1839. In February following, having obtained subscriptions on the same conditions as in Rockland, 117 miles from Bing- . construction immediately proceeded with. The Legisla- ture of 1840 authorized an advance of $100,000 against every sum of $50,000 collected on the stock.
Contracts were next made, on the same plan, for con- structing the road from Middletown over the Shawangunk Ridge and along the east side of the Delaware River to Deposit, and for 124 miles from Hornellsville west to the ten miles before mentioned from Dunkirk east. Thus the whole line was contracted for and in progress, except about 40 miles between Deposit and Binghamton, with- out a dollar from the original stockholders in New York, or any cooperation or sympathy from the citizens. Within about twelve months, the condition and pros- pects of the undertaking had undergone a transition from [ and inventing new ones. weakness and discredit to strength and confidence.
preceding committee, and in some important particulars, far more ample and comprehensive. In conclusion they recommended "that the Legislature should encourage the prosecution of the work by the company, under its then existing organization." The triumphant vindication af- forded by the reports of these two committees, however, was of little or no value to the company or its objects. The managers of the undertaking, who were the objects of the investigations, had honestly and faithfully done their duty, of which none who knew them ever doubted. Its enemies hoped to discover something to encourage their designs. Being disappointed in that, they went on as if nothing had happened, repeating old insinuations
Prior to the investigation of the first committee, Mr. Misrepresentations tending to embarrass the company were made by its enemies, and, to obviate the effect of them, Mr. Lord addressed a letter to the Speaker of the Assembly, at the opening of the session of 1841, request- Lord had determined to resign the care of the company, believing its condition to be safe and that the whole line would be carried through now without interruption. Be- fore withdrawing, however, he proposed a compromise ing the appointment of a committee of investigation into by which the relations of the original stockholders, many all the affairs of the Company.
A committee was appointed "with power to send for persons and papers to examine and report upon all the transactions of the company, its officers and agents, the manner in which the power granted in the charter had been exercised, the integrity and freedom from sinister and selfish interests with which the locations and road- way had been made, the prices which had been paid to contractors, the number, character and compensation of the officers and agents who had been employed, and the impartiality, integrity, prudence and good faith of all the transactions of the directors and their agents."
of whom had been ruined by the fire in 1835, and none of whom had paid anything since 1836, might be adjusted, viz .: that by paying the further sum of $5 per share on their stock they should be entitled to relinquish to the company the original scrip and receive full certificates of stock for the amount of all payments made, and a re- lease from all liability under any outstanding contracts. This was agreed to, the contractors assembled, and a clause was added to all contracts exempting them from further liability.
The only pending or anticipated cause of embarrass- ment or difficulty in the affairs of the company having been removed by arrangement, and the conditions and prospects of the undertaking being assured, Mr. Lord "The result of our investigation not only exonerates the | again resigned, on the 28th of May, 1841.
This committee did their duty and rendered their re- port near the close of the session, in which they said company, its affairs and agents, from everything like a Up to this time eleven only out of thirty instalments charge of fraud or mismanagement, or attempt to evade | of $100,000 each of the State loan had been received,
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GENERAL HISTORY.
Mr. James Bowen was appointed president, and for six months the affairs of the company continued pros- perous.
New embarrassments were thrown in the way of the company by its enemies, and it was crippled and could not pay the interest due on April ist 1842; it was in debt about $600,000, failed and made an assignment, and all work was suspended and remained so until 1845.
In October, 1842, the old board resigned, a new board from the interior counties was elected, and a presi- dent from Chemung county, but they made no progress whatever.
At the annual election in 1843 new directors were elected, most of them fromn New York city. Mr. Horatio Allen, a professional engineer, was chosen presi- dent. They made a report February 2d 1844, showing that the company had expended for surveys, right of way and construction, $4,000,000; that it was all well done and with economy, that more than half of the whole line was completed, and that for finishing the entire line, equipping and putting in use 45 miles, from Piermont to Dunkirk, would require $6,000,000, making the capital $10,000,000. They issued a card, calling for subscrip- tions for this amount, but they were unable to raise it, and abandoned the road at the close of their official year.
The stockholders then united in a request to Mr. Lord to again take charge of it, and at the election of October 23d, 1844, a new board, composed mostly of merchants of the city, was elected and Mr. Lord was again made president. He immediately issued an ad- dress concerning the existing difficulties, the nature and . sources of hostility on the one hand, and of apathy on the other, and proposed to resume the work on a section of the road in compliance with a law providing that if the work was res :: med within two years, the road should not be sold by the State within five years after.
This again inspired confidence in the road and work was immediately recommenced, its utility and necessity became daily more apparent, its great merits began to be felt and acknowledged. Difficulties and embarrassments, which it is not necessary now to rehearse, arose. Mr. Lord sought earnestly to avert these, but finally proposed to resign.
In the meantime, his personal friends in and out of the board, who had been conversant with all the history of events, urged him to remain and prevent the ruin which was otherwise in prospect; they offered to raise the re- quired capital, and actually proffered a large part of it. But ignorantly and wantonly embarrassed and complicated as it had become by the late events and Legislative en- actments, he decided to retire and declined their offer, and after receiving from the directors a writing, express- ing their confidence in him, he resigned the presidency, July 8th 1845, and the directors, who had served with him at former periods, also resigned shortly after. Thus ended Mr. Lords official connection with the New York & Erie Rail Road Company.
SUMMARY.
Recapitulation of some of the literary labors of the late Eleazar Lord, LL. D., of Piermont, Rockland county, N. Y.
In 1813, he wrote and published "A History of the Principal Protestant Missions to the Heathen," in two volumes, published in Boston. In conjunction with Mr. Alfred Mitchell, a fellow student at the Andover The- ological Seminary and afterwards minister at Norwich, Connecticut, he abridged and published " Flavel's Treat- ise on Keeping the Heart." In 1814, he abridged and published " Flavel's Touchstone of Sincerity," and also a pamphlet "On the Necessity, Practicability and Means of Educating Young Men for the Sacred Office." This pamphlet led to the formation of the American and other Educational Societies.
In 1820, he wrote a memorial address to the Legisla- ture of New York, which resulted in the formation of a " National Institution for the Promotion of Industry."
In 1821, he wrote the 5th Annual Report-a pamphlet of forty pages, of " The Society for the Prevention of Pauperism," in the city of New York.
In 1823, he wrote the prospectus of an edition of " Lempriéré's Biographical Dictionary," and about eight hundred original American articles, published by Har- per Brothers, in 1825, in two volumes, octavo.
In 1825, he wrote for the Christian Spectator, an article on the " Holy Scriptures."
In 1826, he wrote the report of " The American Home Missionary Society," in which the plan of operations that was pursued for some years was recommended.
In 1828-29, he wrote and published a volume entitled "Credit, Currency and Banking," recommending in detail the system adopted in 1838 in the State of New York, and afterwards in several other States, known as the "Free Banking System." Under this system, banks were required to deposit with the Comptroller or other State officer, bonds of the United States or of this State, in pledge as security for the same amount of circulating notes, so as to render the notes issued by any bank abso- lutely secure to the holders. This systemn worked well for about twenty-five years and until it was suspended by the present "National Bank System.", In this connec- tion, it may be well to remark, that in 1861, at the solicitation of the Committee of Ways and Means of the House of Representatives at Washington, Mr. Lord wrote out and furnished to the said Committee, the original draft of the law or the Act, establishing the present National Bank System.
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