THE CAMDEN AND AMBOY RAILROAD COMPANY.
For almost forty years the Camden and Amboy Railroad was the only direct route between the cities of New York and Philadelphia. It is doubtful whether previous to the war a more important or a more remunerative road existed in the United States, for, besides connecting the two largest cities in the Union, it formed part of the direct land route from the East to the South.
The efforts to open a direct through route between New York and Philadelphia date back to the year 1812, when the construction of a canal between the Hudson and the Delaware was proposed, but an ill-advised jealousy of the State of Pennsylvania delayed for many years the realization of the project. When this obstacle was finally overcome, a change of sentiment had taken place in New Jersey. Railroads had just made their appearance in the United States, and a large number of the people of New Jersey preferred a railroad to a canal.
The matter was finally compromised in the legislature of New Jersey, which on the 4th of February, 1830, simultaneously granted charters to the Delaware and Raritan Canal Company and the Camden and Amboy Transportation Company, fixing the capital stock of each company at $1,000,000, with the right to increase it to $1,500,000. The charter further stipulated what taxes should be paid to the State, and also contained the provision that within five miles of the starting-point and within three miles of the terminus of each line no other railroad or canal should be built. It was believed the existence of both a water and a land route would be sufficient to maintain competition on this important thoroughfare of interstate traffic. The construction of the railroad, which had been surveyed in almost a straight line between its termini, was at once commenced. A number of well-to-do and practical men took hold of the enterprise, among them one John Stevens, who together with his three sons took one-half of the capital stock. The canal project did not do so well at first. At the middle of the year 1830 only about one-twelfth of its capital stock had been sold, and there was great danger that the company might forfeit its charter, as the time allowed for the subscription of its stock was nearing its end. At this juncture Robert Field Stockton, a young man of ability, enthusiasm and wealth, came to the rescue of the canal company. He not only bought for himself a goodly share of the canal stock, but also prevailed on his rich father-in-law, Mr. John Porter, to invest $400,000 in the enterprise. The financial difficulties of the company were thus removed. At the next session of the legislature Mr. Stockton secured an amendment to their charter which apparently only authorized the enlargement of the canal, but in reality empowered the canal company to construct a second railway.
It was from the beginning Mr. Stockton's object to share with the railroad company the advantages which their line promised to give them. The enlargement of his company's franchise placed him in a position to dictate terms to the Camden and Amboy Transportation Company. The latter was given the choice, to prepare for competition with a rival railroad line, or to consolidate with the Delaware and Raritan Canal Company. It chose the latter alternative, and on the 15th day of February, 1831, the two companies became one. The consolidation still required the sanction of the legislature. This was obtained in consideration of the transfer of 2,000 shares of the capital stock of the company to the State. It was further stipulated that the new company should pay to the State a tax of 10 cents for each passenger and of 15 cents for each ton of freight carried over its line through the State, as well as an annual tax of $30,000, and that the State in return should protect the company against any and all competition in the direct passenger and freight traffic between the cities of New York and Philadelphia. Serious doubts were at the time entertained by many, whether the State of New Jersey under the Federal Constitution possessed the right to thus create a monopoly in transportation facilities, and to regulate arbitrarily the commerce between sister States.
Five days after it had granted this charter to the Camden and Amboy Company, the legislature granted another charter authorizing the construction of a railroad from Jersey City to New Brunswick on the Raritan River. On the 23d of February of the same year a charter had been granted by the legislature of the State of Pennsylvania to a company which had been formed for the purpose of constructing a railroad from Philadelphia to Trenton. This company had likewise been authorized by its charter to buy the right of way for a railroad from Trenton to New York, which it proceeded at once to do. It was evident that as soon as the two new roads would meet at New Brunswick, an understanding would be reached between them, by which another through line would be created between New York and Philadelphia, which would have the advantage over the Camden and Amboy road that it touched the capital of New Jersey and could thus make itself serviceable to members of the legislature, officers of State and influential politicians.
The Camden and Amboy Freight Company soon arrived at the conclusion that it could not permit such rivalry. It appealed to the legislature for protection. Resolutions were passed in its favor, but the Philadelphia and Trenton Railroad Company paid no attention to those resolutions, but quietly continued to lay its track. Mr. Stockton and his friends did not dare to invoke the aid of the courts, because a judicial investigation might have resulted in the destruction of their own charter. The situation was critical, but Mr. Stockton was equal to the occasion. He bought quietly a sufficient number of shares to control the management of the Philadelphia and Trenton road, and, in April, 1836, secured the consolidation of the Philadelphia and Trenton and the Camden and Amboy railroad companies.
The canal of the company was not completed until 1838. It had consumed a sum of money largely in excess of the original estimate. To connect the two lines of the consolidated company, a branch road was constructed from Trenton to Bordentown. Later the road from Trenton to Brunswick was completed and an agreement entered into with the Jersey City company for a division of the traffic of the two roads. The large cost of these improvements suggested to the company the advisability of increasing its revenues and of decreasing its expenditures. Its charter provided for a payment to the State of 10 cents for each through passenger. By an artifice the company avoided the payment of this tax. It compelled its through passengers to walk over the bridge at Trenton and then continue their journey by rail via Bordentown to Jersey City.
The company's charter also stipulated, that the fare between New York and Philadelphia should not exceed $3 per passenger. Its officers interpreted this stipulation to apply only to the intermediate traffic and proceeded to collect $2.50 for the trip from New York to Trenton, and $1.50 from there to Philadelphia, thus increasing the fare for the entire journey to $4.00, one dollar above the maximum allowed by law. One Jacob Ridgway, who was the owner of a ferry-boat at Camden, saw here an opportunity for starting a lucrative business. He bought a steamer and carried passengers from Philadelphia to Trenton for one-third of the fare demanded by the railroad. After the Camden and Amboy Company had made several unsuccessful attempts to intimidate Mr. Ridgway and his force, one of which even brought Mr. Stockton in contact with the criminal courts, it purchased the boat with all terminal facilities at Philadelphia and Trenton. The attention of the legislature of New Jersey was repeatedly called to the company's failure to comply with the provisions of its charter, but these appeals were on the whole of no avail. In 1842, after a long discussion, a resolution was carried declaring the charge of $4 for the through journey illegal, but the company entirely ignored this legislative reminder and continued its old tariff.
The company's charter also reserved for the State the right to acquire the Camden and Amboy road under certain conditions upon the payment of a reasonable compensation. In 1844, through Mr. Stockton's engineering, the constitution of New Jersey was so amended as to practically deprive the State of the power to acquire the company's property.