256 A. L. Bishop — The State Works of Pennsylvania. 



Within a month from the time of the receipt of the above letter, 

 Governor Pollock submitted it to the consideration of the legislature 

 vi^hich was then in session. ]^o defiaite action was taken in 1856. 

 Again, in referring to the proposal made in 1855 by the Pennsyl- 

 vania Railroad Company the governor, in his message of 1857, 

 said: — "In relation to the propriety and policy of the sale of the 

 main line of our public improvements my opinion has not changed. 

 Every consideration of public policy, of present and future interest, 

 requires the separation of the state from the management and 

 control of these works. The expenditures on that portion of the 

 line between the Juniata and Pittsburg largely exceed the revenues, 

 the excess averaging annually not less than $150,000; and causes 

 are in constant operation that will still more increase this deficiency. 



The continual drain on the treasury to sustain a work so unpro- 

 ductive should at once be checked. A sale of the main line for a 

 fair consideration and upon terms just and liberal to our purchasers 

 is the proper remedy. In connection with the payment of the 

 public debt, this question becomes deeply important. The sale 

 would constitute a new era in the financial history of the state." 



The legislature forthwith proceeded to deal with the offer of the 

 Pennsylvania Railroad Company and again on May 16th, 1857, 

 an Act authorizing the sale of the main line at public auction was 

 passed.* A minimum price of $7,500,000 was retained. Provision 

 was made that, in case the above-mentioned company should buy the 

 line, the whole amount of the sale should be paid in its bonds bear- 

 ing interest at 5 per cent, per annum, payable half-yearly. These 

 were to be redeemed as follows : — $100,000 worth on July 31st, 1858 ; 

 a similar amount annually until 1890, when $1,000,000 of the bal- 

 ance should fall due, and the same sum each year thereafter until the 

 whole debt should be discharged. 



The auction was held at the Merchants' Exchange, Philadelphia, 

 on June 25th, 1857, when the property was sold to J. Edgar Thomp- 

 son, acting in behalf of the Pennsylvania Railroad Company.f 

 Accordingly this corporation took possession of the main line of 

 state works on August 1st. Bonds of the company to the amount of 

 the purchase money were deposited with the state treasurer and 

 held by him for the commissioners of the sinking fund. For, by 



* Laws of Pennsylvania, 1857, p. 519. 



t Wilson, History of the Pennsylvania Railroad Company, I, p. 48. 



