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.
