"1. Separately, our charges can scarcely fail to be affected 25 cents by the mutual fear of competition, alleviated as much as possible. That all comes from the profits on 300,000 tons; it is the interest on a million.
"2. In a state of paper-money prices, advancing constantly because of increasing issues, we can protect ourselves only by making rates correspond with daily increasing expenses.
"This is not apt to be done with sufficient promptitude and boldness.
"You will be and we shall be timid and laggard in meeting the exigencies which are before us—from fear of competition and from the delay which always attends arrangements between independent parties.
"3. We should better our condition as to our land grants if our efforts were joined. We could do so at the present session of Congress.
"There are other considerations which I have not time to discuss.
"It is necessary to arrive at results as soon as possible.
"1. Some important construction we have deferred to await the negotiations.
"2. We shall soon have to decide important questions which would be affected very materially by the junction of our interests. Of course, we are not so improvident as to act now on the hypothesis of successful negotiations between us.
"Our construction is advancing well. We have sent up 400 additional men since Feb. 1. We still strain every nerve for completion June 1. None of our managers in the West fear that it will be much later. I assure you that in this respect and in all respects our affairs were never so promising as now. I express my strong desire to form a junction of our interests as frankly as if you did not represent the other party to the negotiation; for, while attending carefully to everything necessary to our independent existence, I see that it can still be bettered by the measure contemplated. There is no mistake so common among business men as to suppose that what one gains another loses. I have just had an illustration of this in making in behalf of the bondholders of the Fort Wayne a counter proposition to that of the stockholders under which the stock rose 40 per cent.