I knew that the bait of a credit in London would affect him, as the Spanish bankers had long tried in vain to establish their credit in the financial metropolis of the world.
"Where is this property?" he asked.
I drew a diagram of the property for him, explaining its location and its relation to other properties and enterprises. I told him of the Erie Railway, ending at Olean, and the Ohio and Mississippi Railway from Cincinnati to St. Louis. "There is no connection between these two great highways," I said, "and a highway that will connect them will prove a fortune-maker to every one associated with the project." I explained that there were only four hundred miles between the two, and how I purposed filling in this gap. Between the two ends of the completed railways lay three wealthy States. This road has since been reorganized under the name of the New York, Pennsylvania and Ohio, or as it is colloquially called, the "Nyp. and O." Near Olean now exists a town that has the name of my Spanish friend, Salamanca.
My arguments touched Salamanca, but did not capture him. They paved the way, however, for his complete capitulation a little later. My next step was to go to London and confer with the Kennards, famous bankers of that city. We arranged that a nephew of the Kennards, a son of Robert William Kennard, then a member of Parliament, and an engineer of note, should accompany me to America and go over the entire ground of the proposed route.
We came to New York in October, '57, and shortly after we arrived had a conference at the St. Nicholas Hotel, in Broadway, with the men who were most interested in the proposed road. Maps were exhibited, and the plans fully explained. We then left for Olean, where we were met by the contractor in charge of the road, whose name was Doolittle, by Morton the local engineer, and by General C. L. Ward, the president of the road. The whole party took wagons for Jamestown, forty miles away. At this point we were met by a committee appointed to take care of us and to show us what had been done, and what could be done. This was the program throughout, as we passed on from point to point. Among the men who met us at Jamestown was Reuben E. Fenton, who had just been elected Representative in Congress from that district, and was afterward Governor and United States Senator. The line of the road was followed as far as Dayton, Ohio, where it was proposed to connect with the Cleveland and Cincinnati Railway.
At Mansfield there was a great gathering in honor of the occasion. The committees of the three States—New York, Pennsylvania, and Ohio, were present, and there was speech-making. I made a speech, which is printed in full in "Spread-Eagleism," published in '58. Judge Bartley, afterward famous on the Federal bench, was chairman of the meeting. I asked if there were not some one present from Ohio who could give us a clear statement as to what we could expect. Judge Bartley called on "Mr. Sherman." A tall, spare man arose. It was John Sherman. He made a speech that was clear, direct, and forcible. Among the other speakers were Robert E. Schenck, of "Emma Mine" fame, who had been elected to Congress recently, and Senator Benjamin F. Wade.
Just before the close of the meeting I introduced Thomas Kennard, the civil engineer, and told the crowd that the road was to be built, and that it would be aided by the money of Queen Maria Cristina of Spain and the great Spanish banker, Salamanca.
I made a report in London of the work accomplished in America, and at once began to purchase material for the road. I sought out Mr. Crawshay Bailey, then a member of Parliament, and a great Welsh iron-master, and he invited me to dine with him and his wife. He had just married a charming young lady. At dinner, I found that Mrs. Bailey spoke French very fluently and that Mr. Bailey did not understand a word of it. So I asked permission of the iron-worker to carry on a conversation in French with Mrs. Bailey. This delighted him very much, for he liked to see that his wife was mistress of a language of which he did not know a single word. This subtle flattery of his judgment and taste so pleased him that I was able to close a bargain with him for 25,000 tons of iron at $40 the ton—$1,000,000—pledging for the debt bonds of the Atlantic and Great Western Railway, at two to one. This was the first great purchase made after the panic of '57.
My second purchase was made from the Ebwvale Company, of Wales. Through Manager Robinson I negotiated for 30,000 tons of iron at $40 the ton—$1,200,000—pledging bonds of the road at two to one, as with Bailey.
I have already spoken of Salamanca, the Spanish Rothschild, and how I had tried to obtain his notes for $1,000,000. I finally succeeded in getting this loan, pledging $2,000,000 bonds of the road as security. At this time, no Spanish securities had been negotiated in Lombard Street for years. It was highly necessary for me that these notes of Salamanca should be negotiated. I went to Mathew Marshall, Jr., of the Bank of London. He was the son of the old Mathew Marshall who had signed the notes of the Bank of England for fifty years. I asked him what $50,000 of the notes of Salamanca would be accepted at by the bank. He replied that they would not be accepted at all. "No Spanish paper can be used in London," he said.