^^ 



Figure 53. — The "Vincennes," Built by Niles in 1855 or 1856 for the 

 Evansville and Crawfordsville Railroad. 



large portion of the selling price. The Lawrence Machine Shop is 

 known to have accepted land from railroads in Indiana, Illinois, 

 and Nebraska in return for locomotives. ^''^ Undoubtedly other 

 eastern shops of no less means were willing to speculate on the rising 

 value of western land. Conversely, the railroads were apparently 

 delighted to accept cheap locomotives on easy terms, since they 

 could then invest their cash in land or extensions of their lines 

 in the belief that rapid settlement of the country would increase land 

 value and traffic so that new and better equipment could be pur- 

 chased at some future date. It was this shortsighted optimism, 

 coupled with no small degree of opportunism, which contributed to 

 the huge over extension of credit (mainly to booming midwestern 

 rail lines) that resulted in the Panic of 1857. 



While commenting on the state of the locomotive building industry 

 and the disastrous effects of the financial collapse in 1857, the 

 Railroad Advocate stated as a matter of history: "... locomotives 



^^^^ American Railway Times (February 8. 1862), vol. 14, p. 46. 



114 



