A. L. Bishop — The State Worlcs of Pennsylvania. 257 



the twelfth section of the Act of May 16th, the entire proceeds of 

 the sale were required to be paid into this fund and applied to 

 the payment of the state debt. 



The later history of what had been the main line of public works 

 confirms the belief that it had outgrown its usefulness when sold. 

 The Pennsylvania Railroad Company operated the Portage railroad 

 during the months of August, September and October, 1857. It 

 was then closed owing to the excess of expenditures over receipts, 

 and the traffic was transferred to the company's own line which 

 crossed the mountain. The loss incurred during these three months 

 w^as $7,220.14. The following year the new owners began dis- 

 mantling the Portage road and removing the materials. Most of 

 the rails were used in extending the Pittsburg, Fort Wayne and 

 Chicago railroad from Plymouth to Chicago. Many of the stone 

 blocks which had served as a support or foundation for the rails 

 were removed to Altoona and used in the masonry of the railway 

 shops.* 



On the other hand, the Philadelphia and Columbia railroad was 

 still kept in use. Indeed the Pennsylvania Railroad Company had 

 had running privileges over it for several years previous to the date 

 of purchase. A large part of this work was known later as the 

 Philadelphia division of the Pennsylvania system. 



The canals of the main line were operated as a canal department 

 of the Pennsylvania Railroad Company for the period of ten years. 

 They were found to be unprofitable, however, and were then trans- 

 ferred to the Pennsylvania Canal Company. They continued to 

 be used for a number of years but the various sections were grad- 

 ually abandoned. The division between Johnstown and Pittsburg 

 ceased to be used in 1864, the one along the Juniata in 1898, and 

 finally the eastern division in 1900. 



In the meantime the sale of the main line had been quickly 

 followed by a movement for the disposal of the lateral works. In 

 general the arguments used in the former agitation applied equally 

 as well in the latter. Moreover, it was at this very time that there 

 was a serious depression in the business affairs of the country"}" 



* Wilson. History of the Pennsylvania Eailroad Company, I, p. lo'i. 



f "A sudden and severe financial revulsion has occurred. . . . Every 

 department of industry has felt and been disastrously affected by the shock. 

 Trade and commerce have been paralyzed. Many of our furnaces, rolling 

 mills and factories have been closed. Extensive and valuable coal operations 



