Cleveland railroading Amasa Stone

1 cleveland railroading

1.1 cc&c , ls&ms
1.2 civil war
1.3 association cornelius vanderbilt
1.4 ls&ms again, , other post-war railroad career
1.5 health issues , ashtabula bridge disaster

cleveland railroading
the cc&c , ls&ms

the cleveland, columbus , cincinnati railroad (cc&c) chartered in 1836. after several false starts @ construction, in november 1848 company issued request proposals build first leg of line cleveland columbus, ohio. frederick harbach, surveyor , engineer several ohio railroads, surveyed route new spur in 1847. stone had worked harbach , railroad engineer, stillman witt, while building railroad bridges in new england. alfred kelley, attorney , former state legislator, canal commissioner, banker, , railroad builder, president of railway, , he, too, knew stone railroading days in east. kelley , cc&c managers reached out stone, harbach, , witt, , asked them bid on project. stone, harbach, , witt formed company in late 1848 bid on contract, won. construction began on line in november 1849, , final spike driven on february 18, 1851. stone, harbach, , witt agreed take portion of pay in form of stock in railroad. stock soared in value spur completed, making stone wealthy.

in 1849, stone, harbach, , witt won contract build bellefontaine , indiana railroad. indiana portion of line finished in 1852, , ohio portion in july 1853.

in 1850, stone appointed construction superintendent of cc&c, , moved cleveland. named director of railroad in 1852.

stone became construction superintendent of railroad in 1850, 1 known lake shore , michigan southern railway (ls&ms). line began in 1833 series of small, independent railroads combined larger , larger companies. 1 of first of these smaller lines cleveland, painesville , ashtabula railroad (cp&a), had been chartered in 1848 build track cleveland border pennsylvania. alfred kelley 1 of directors. on july 26, 1850, cp&a awarded contract build 95-mile (153 km) line firm of stone, harbach, , witt. line completed in autumn 1852, , stone named director of railroad in august 1853 @ salary of $4,000 year ($115,152 in 2016 dollars). continued in position until corporation s merger ls&ms in may 1869, , served cp&a s president august 1858 march 1859. while stone served director, cp&a leased jamestown , franklin railroad (j&fr) in march 1864 20 years. oversaw construction of union depot (named because railroads in city use same station) in erie, pennsylvania in 1866, , became director of j&fr (probably single year) in 1868. stone again elected director of ls&ms in august 1869, , appointed ls&ms general manager in july 1873 (serving until june 1875). railroad in financial difficulty mid-1873, , stone s appointment made in large part stabilize it. 1 month after stone took on general manager, learned 1873 dividend (which cost $2 million) had been paid loan union trust company (a cleveland bank). when economy soured in august, bank called loan. ls&ms went receivership, cornelius vanderbilt (another director of road) repaid loan out of own funds. when health failed in 1875, stone resigned position director , general manager.

stone remained construction superintendent of cp&a until july 1853, , of cc&c until 1854, when resigned both offices (retaining directorships) due poor health. following year, stone , witt signed contract clear , grade 44.6-mile (71.8 km) chicago , milwaukee railway waukegan, illinois, border wisconsin. , witt signed second contract in 1858 build track.

stone added important railroad executive position when became director of cleveland , toledo railroad in june 1859. directorships road lasted year, , stone served 1 term. elected again in june 1863 , june 1867, , served company s president january june 1868. during last term director of line (and while serving director of cp&a), cp&a leased cleveland & toledo 99 years on october 8, 1867, running railroad. on june 17, 1868, cp&a changed name lake shore railway, , absorbed cleveland & toledo on february 11, 1869.

civil war

during american civil war (1861 1864), stone focused attention on running railroads benefit of union war effort, , became millionaire. ardent supporter of president abraham lincoln, , lincoln consulted him on both supply , transportation issues. became friend of lincoln s, , raised , supplied troops union cause. in 1863, lincoln offered stone brigadier generalship if construct military railway kentucky knoxville, tennessee. stone turned down generalship , persuaded president abandon project (which unfeasible , unnecessary). while visiting washington, d.c., during trip visit lincoln stone met , became friends lincoln s private secretary, john hay.

it became clear during civil war cleveland s lone railroad station—a small wooden structure built in 1853 @ base of bath street (now front avenue) on cleveland flats—was not large enough handle city s growing rail needs. station burned ground in 1864, , amasa stone tapped railroads build new union depot. stone both designed , oversaw construction of luxurious , large station, opened on november 10, 1866.

by 1868, stone s annual income had risen $70,000 year ($1,349,438 in 2016 dollars), , few years later owned property worth @ least $5 million ($109,045,455 in 2016 dollars).

association cornelius vanderbilt

cornelius vanderbilt.

cornelius vanderbilt waged long , bitter war control of new york central railroad 1865 1867. central, governed clique of men known albany regency , controlled of rail traffic outside of new york city. vanderbilt s hudson river railroad not had direct link between albany, new york, , new york city, had rail line lower manhattan. vanderbilt won agreement central transfer freight line. contract required central pay hudson river railroad $100,000 year ($1,531,277 in 2016 dollars) keeping rolling stock on hand in summer handle increased traffic moving north. group of new york city investors—led banker legrand lockwood, american express , wells fargo founder william fargo, , michigan southern , northern indiana railroad president henry keep—decided seek control of central. amassed two-thirds of company s stock, , ousted albany regency . keep, elected president of central, revoked yearly payment. outraged vanderbilt stopped carrying central freight. steamboats not move central s cargoes because hudson river frozen due harsh winter. freight backed in albany, , new york city cut off rail. central s stock price fell. in attempt make money off situation, keep borrowed significant amount of shares sell short. flooding market shares drove price further downward, , vanderbilt , allies purchased these shares. forced keep pay lenders out of own pocket, hurting him financially, , allowed vanderbilt group gain control of central. keep resigned, , horace henry baxter named president in december 1866. vanderbilt exerted power again in december 1867, , had himself named president of central.

realizing new york central depended heavily on connecting lines reach midwestern cities chicago, cleveland, detroit, , st. louis, vanderbilt decided add amasa stone central s board of directors. stone first appointed board in 1867, , served until december 1868. in april 1868, stone played major role in bringing cornelius vanderbilt , oil magnate john d. rockefeller. vanderbilt wanted new york central carry both raw , refined oil being shipped rockefeller. on april 18, 1868, vanderbilt asked rockefeller (then visiting new york city) meet him. rockefeller refused, sending business card. believed vanderbilt try charge him high freightage rates, , rockefeller knew oil refineries , consumers without vanderbilt. vanderbilt persisted, however, , later afternoon sent amasa stone visit rockefeller @ rockefeller s hotel. 2 clevelanders spoke several hours, , stone convinced rockefeller see vanderbilt. 2 men met evening, , began long , fruitful business relationship.

vanderbilt subsequently played critical role on amasa stone s railroad career. vanderbilt wanted control of lake shore railway, had formed out of combination of smaller ohio, indiana, , illinois railroads on march 31, 1868. in may 1868, vanderbilt s proxies attended first lake shore stockholders meeting, , discovered legrand lockwood had sizeable financial interest in company. vanderbilt defeated in attempt install own man lake shore s president. during next several months, lockwood worked investor , robber baron jay gould, engaged in erie war control of erie railroad , wanted divert lake shore traffic erie. on august 19, 1869, lockwood , gould rammed plan through lake shore s board of directors. vanderbilt fought them, victory in securing election of amasa stone lake shore s board. stone served until health failed again in 1875, when resigned.

stone s usefulness vanderbilt interrupted, however. on october 18, 1867, stone , j.c. buell, cashier of cleveland s second national bank, hurled carriage after came apart after hitting open gutter in cleveland s public square. stone severely injured, , walked strong limp rest of life. stone went family europe recuperate in 1868, , spent 13 months abroad. first of 2 lengthy trips abroad him.

ls&ms again, , other post-war railroad career

amasa stone had wide range of railroad interests throughout midwest in late 1860s , 1880s. in 1868, , hiram garrettson, jeptha wade, , stillman witt invested in , constructed cleveland , newburgh railroad. steam streetcar line cost $68,000 ($1,223,490 in 2016 dollars) build, , ran 3.3 miles (5.3 km) down willson avenue (now east 55th street) , kinsman road newburgh (now south broadway neighborhood). went bankrupt in 1878.

on july 2, 1870, lake shore , tuscarawas valley railway (ls&tv) incorporated build railroad berea, ohio, mill township in tuscarawas county, ohio, join pittsburgh, cincinnati, chicago , st. louis railroad line. branch elyria, ohio, authorized. in february 1871, stone among several men appointed investigate feasibility of constructing line. construction began, ls&tv fell receivership in july 1874 failing pay mortgage on railroad had acquired, , on january 30, 1875, stone , 4 other investors formed cleveland, tuscarawas valley , wheeling railway (ctv&w) take on assets of ls&tv. stone named director of ctv&w in 1877, serving until 1882. ctv&w once again fell receivership in february 1883. after cleveland investor purchased it, sold yet investors group—once again led stone—which filed charter on march 1, 1883, incorporate cleveland, lorain , wheeling railway (cl&w), assumed assets of ctv&w. before, stone named director of new road.

in 1870, @ conclusion of 13-month trip europe, stone once more elected director of ls&ms. retained position in 1871, 1872, 1873, 1874, 1875, 1876, , 1879. cornelius vanderbilt became president of lake shore in july 1873, , asked stone become managing director , de facto president of railroad. stone managing director of line in 1873, 1874, , 1875. interruption in directorship , termination of position managing director occurred after resigned due ill health in june 1875 go abroad 18 months.

in 1871 , 1872, stone named director of toledo, wabash , western railway (tw&w). road had formed in 1865 when toledo , wabash railway, great western railway of illinois, illinois , southern iowa railroad, quincy , toledo railroad, , warsaw , peoria railroad merged. cornelius vanderbilt picked large blocs of stock in road part of erie war, , tw&w , ls&ms had agreed merge in 1869. vanderbilt subsequently installed strongest business associates directors of tw&w, explains stone s appointment.

beginning in 1872, stone played role on 3 michigan railroads well. first northern central michigan railroad, stock purchased ls&ms in 1871. ls&ms operated road, , installed own directors directors , officers of north central. beginning in 1872 , lasting end of 1876, stone director of road. left board after 1876 due 18-month trip in europe. similarly, ls&ms purchased stock in , operated detroit, monroe , toledo railroad. stone director , president of road without interruption 1872 death in 1883. finally, ls&ms purchased , operated kalamazoo , white pigeon railroad. stone director of road without interruption 1872 death in 1883.

beginning in 1873, stone began playing major role in mahoning coal railroad (mcr). company incorporated in 1871 build line youngstown, ohio (the location of burgeoning steel industry) brookfield township in trumbull county, ohio. branch line liberty township (also located in trumbull county) ashtabula branch of ls&ms authorized. mcr gave improved access extensive coal mines, , rolling stock designed carry bulk coal. ls&ms leased line 99 years beginning may 1, 1873. stone director of mcr rest of life (except 18-month period in 1875 , 1876 when in europe regain health).

health issues , ashtabula bridge disaster

in panic of 1873, stone lost as $1 million ($19,991,667 in 2016 dollars) making payments on loans called desperate bankers , friends, , in financially propping friends , business associates. lost large sums of money selling stock in ls&ms , in western union @ panic prices. stone hid extent of financial difficulties everyone, son-in-law john hay believed stone neared bankruptcy. stone weathered financial crisis, however, , recovered of wealth.

stone s financial situation recovered enough able invest in mississippi valley , western railway. railroad (organized may 22, 1871) merged on january 20, 1873 mississippi valley , western railway , clarksville , western railroad company under name mississippi valley , western railway. amasa stone invested in new company on january 20, 1873. railroad defaulted on bonds, , stone not became co-owner of road named director of line on august 7, 1874. bankruptcy court put railroad sale, , sold andros stone on april 14, 1875. 6 days later, andros stone sold railroad st. louis, keokuk , north western railway (slk&nw), had been formed andros stone , others acquire assets of bankrupt line. in december 1879, stone became director of slk&nw. stone remained on board of slk&nw until death.

stone invested in railroad, keokuk, iowa city , st. paul railroad, in 1875. road, formed in 1870, still had 30 miles (48 km) incomplete when stone acquired in may 1875. board of directors (which did not include stone) installed, railroad s history unclear after this.

stone began suffer undisclosed major health problems in spring of 1875, , , wife went europe 18 months beginning in late 1875. event largely sparked stone s retirement of business ventures. while overseas, left management of enterprises in hands of son-in-law, john hay. during absence, great railroad strike of 1877 occurred, hitting railroads hard.

while stone overseas in 1876, 1 of greatest events in life occurred. @ 7:30 pm on december 29, ls&ms bridge on ashtabula river collapsed in came known ashtabula river railroad disaster. 2 locomotives hauling 11 passenger railcars of ls&ms plunged ice-clogged river below. wooden cars burst flame when kerosene-fed heating stoves overturned, rescue personnel made no attempt extinguish fire. accident killed 92 people , injured 64. amasa stone had overseen both bridge s design , construction. ordered bridge built using howe truss design despite chief engineer s argument span long safely bridged design. stone later admitted using howe truss such long span experimental . when bridge engineer joseph tomlinson expressed concern bridge not handle stresses place upon it, stone fired him. state investigators later concluded bridge had been improperly designed, inadequately inspected ls&ms, , had used faulty materials (provided cleveland rolling mill, stone s brother, andros stone, managed). found extensive evidence bridge had been poorly constructed: struts not in correct place, braces not tied together, , bearings had been improperly laid. stone categorically denied there design or construction flaws. instead, asserted bridge designed stronger needed be.

in 1 of last major railroad positions, stone briefly became director of 2 railroads, massillon , cleveland railroad , pittsburgh, fort wayne , chicago railway, in 1883.

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