l business of management. Under Thomas, who remained at the
head of affairs from 1896 to 1900, the Erie made substantial progress.
The system was solidified and its territory was more uniformly and
systematically developed. In 1898, the Erie secured control of the
New York, Susquehanna and Western system, gaining thereby an important
branch to Wilkesbarre; and in 1901 it purchased jointly with the Lehigh
Valley Railroad the stock of the Pennsylvania Coal Company of which
the Erie later became sole owner. The real achievement of the Thomas
administration was the development of the property as a heavy carrier of
anthracite coal. On the financial side during this period the credit of
the House of Morgan, intelligent administration, and modern methods did
much to improve the reputation of the Erie and enable it to live down
its bad inheritance.

In 1901 Frederick D. Underwood succeeded Thomas. Like his predecessor,
Underwood represented the modern type of railroad president--a
hard-working, eminently practical big business manager of great
executive talent. Underwood's idea was to make the Erie a great
freight-carrying system by developing its tonnage and its freight
capacity in every way possible. Consequently he favored opening up the
property more extensively in the soft coal fields of Ohio and Indiana,
reconstructing roadbeds, laying extra tracks, and eliminating grades and
curves.

The history of the Erie Railroad ever since 1901 has been a record of
progress. During these years the system has been practically rebuilt.
It now has a double track from New York to Chicago; it has extensive
mileage in the soft coal regions of Ohio and Indiana, and its soft coal
tonnage today far overtops its tonnage of anthracite coal; its train
load averages far higher than that of the New York Central or of any
other Eastern trunk lines except the Pennsylvania; its steep grades
throughout New York State have been for the most part eliminated, and
many short cuts for freight traffic have been built.

In carrying through these extensive developments in fifteen years the
Erie has spent hundreds of millions of dollars. More money indeed
has been used legitimately for improvement and development since the
reorganization of 1896 than during the previous sixty years of its
existence. Of course this outlay has meant that the Erie has had to
create new mortgages and borrow many millions; but a large part of
the expenditure for improvement has