Page:Vincent F. Seyfried - The Long Island Rail Road A Comprehensive History - Vol. 2 (1963).pdf/139

 Collapse of the Poppenhusen System Island City, with excursion tickets at 15¢. All the passengers who had previously patronized the White Line now rushed back to the North Side road. The following day Havemeyer cut his rates to meet the North Side's tariff. To further injure Poppenhusen and recover lost traffic, the Long Island's Board of Directors authorized the surveying and construction of some new branches, designed to tap the Poppenhusen system. One was designed to run the length of the Rockaway peninsula, and another to drop from Brentwood south to Islip and Babylon, both to siphon off the summer excursion traffic.

By June 1875 was reported that the Flushing line of the Long Island R.R. had thus far cost the road $5,000 in excess of the receipts, while the Flushing & North Side ran $200,000 behind during the operation of the White Line. It was clear to everyone by this time that both the North Side and Long Island systems would sooner or later either break or be forced into an agreement. In the spring of 1874 there was a rumor that Charlick would sell out the Long Island R.R. to the Poppenhusen interests if they could raise the money, but nothing came of this. In January 1875 a reporter called on Herman Poppenhusen and was assured that the North Side R.R. had not the slightest interest in the Long Island R.R. On January 12, 1875, an article appeared in the New York press announcing such a sale, but it was again denied. The Brooklyn Eagle pointed out that the Poppenhusens were in no condition to buy any new roads after buying up the South Side R.R. This had been a financial strain dictated solely by the fear of Charlick purchasing the road and making another White Line of it. In May when the persistent rumor again arose, President Havemeyer of the Long Island R.R. again denied it, yet in a press interview in June he himself casually remarked that a consolidation might be forthcoming eventually.

The steady pressure of financial stringency was having its effect on the managements of both systems and the Poppenhusens took the initiative in sending out cautious feelers. These initial contacts went so well that news of an understanding eventually leaked out to the press in January 1876. As late as January 20 the two roads were still issuing denials and the press speculated on the dangers of a monopoly. On January 23, 1876, President Havemeyer and Herman Poppenhusen were observed