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76 BETWEEN THE OCEAN AND THE LAKES
manner as to secure all the benefits of the law of might make it available. Such a law was
April, 1843. 3. That an instalment of $5 per share That it was passed, however, and impending disaster
be called at the pleasure of the Board after the first to the New York and Erie Railroad averted, was
day of January, 1845, and that subsequent instal- due to collateral issues entirely, which thus become
ments be restricted to $20 per share in 1845; $3° m an important and interesting part of the Story of
1846; and $45 in 1847. 4- That as an equitable, Erie.
and, under existing circumstances, an expedient
measure, interest at the rate of six per cent, per Up to the time of the completion of the Erie
annum be allowed on all the instalments on the Canal, in 1825, Newburgh, N. Y., by reason of her
stock which shall be subscribed from the dates of boating facilities on the Hudson River, and through
the respective payments until the whole line of the a system of turnpike roads which brought her in
road from the Hudson to Lake Erie shall be put direct communic ition with New Jersey, Pennsylin
operation; and that the same be liquidated and vania, and New York State, and as far west as the
paid yearly on the firstday of January." Mr. Lord " Lake Country," was the most important commerdwelt
on the earning capacity of the railroad that cial center between New York and Albany, and had
would follow its extension beyond Middletown, bas- been such for manyyears. The canal diverted much
ing his calculation on what it was then earning— of Newburgh's western trade, but the place still re-
$58,000 a year; called attention to the fact that the tained its ascendancy as the distributing point of the
two years which the bonding act of 1843 gave the commerce of Northern New Jersey and Pennsylvania
Company to resume woik in order to save the road and Southern New York until the Delaware and
from sale under the State lien would expire with the Hudson Canal was opened in 1829. Although this
coming April, then less than six months off; and re- canal was constructed by a private corporation, priferred
to the advantages of the act of 1843, provided marily for the purpose of transporting that corporathe
Company should not fail to avail itself of them tion's own coal to market, its facilities made it to
by obtaining funds and resuming work.
such a great extent a common carrier that the trade
This appeal for funds, however, and the plan offered of a wide area of country that had long been conby
President Lord, did not have the desired effect. In trolled by Newburgh soon discovered the advanspite
of his positive assurance that bonds issued un- tages of this canal as a means of transportation, and
der the act of 1S43 would be " an eligible and safe its outlet to market and the inlet of its commercial
reliance," investors chose to take the doubtful view exchanges was removed from Newburgh to Ronof
the value of such a security that the Allen man- dout. Although Newburgh still commanded the
agement had expressed, and declined to risk their trade of a community large enough to provide ample
money. This led Mr. Lord,if not to change his business for several lines of sloops, that class of craft
opinion about the sufficiency of the law, to adopt the being employed almost exclusively in transportation
popular view of it and act accordingly. He raised on the Hudson River at that time, she was far from
enough money among his personal friends to protect content to occupy a place of importance secondary
certain of the old contracts made for work on the to that of the tide-water terminus of the Delaware
railroad beyond Middletown, and in December, 1844, and Hudson Canal, which the increasing favor with
contracted for the grading and masonry of fifteen which anthracite coal was being received in the
miles of the railroad between Middletown and Port market was destined to carry to a position of great
Jervis. This work was begun in time to save the prominence in the commercial world. To regain the
sale, and thus two years more of tenure, at any rate, prestige she had lost, and to rise to new and greater
were insured to the New York and Erie Railroad business eminence, Newburgh decided that there
Company. Mr. Lord notified the Legislature for could be no better means than the connectin°- of
1845 of this resumption of work, and asked that the herself with the Pennsylvania coal fields by a railrelief
act of 1843 De modified so that the Company road. Acting on this decision, which was reached