in 1885. New York Central was competing with Pennsylvania railroad for control over the West Shore line. The two companies were engaging in rate wars and for control over surrounding lines. A second offspring, the South Pennsylvania line, was built by the Central to compete with the Pennsylvania line. Morgan argued that is was senseless for Vanderbilt and Gould, the two leaders, to compete over the lines. J. P. suggested that the Pennsylvania should allow Central to buy the West Shore and Central should turn over control of the South Pennsylvania to the Pennsylvania owners. The two parties agreed and Morgan was again hailed as an industrial wizard. Mr. Morgan developed into the nation's railroad reorganizer. In 1886, the Philadelphia and Reading Railroad was in great difficulty with a deficit of six million dollars a year. Morgan was brought in to slash the value of the watered stock, reduce interest rates on the bonds, and assess the shareholders for more money. Morgan's plans for the Philadelphia and Reading lines were working well until their president A. Archibald McLeod waged was against Pierpont. Archibald built connecting lines and shipped coals on the carts. Morgan objected to these and other actions but was still able to reorganize the rails. In 1888, John Pierpont was again called on to reorganize railroads in the east. He reorganized the Chesapeake & Ohio and the Baltimore & Ohio. He often encountered some resistance to his interference but managed, in the end, to accomplish his set goals and reshape the failing economic Railroad system. Morgan was unsympathetic with governmental regulation; however, he sought to help enforce the Interstate Commerce Act of 1887. The act asked for the maintenance of "public, reasonable, uniform and stable rates. The act served to at least establish some community of interest among railroads that, at the time, were engaged in ruthless and wasteful competition. Their alliance paved the way fo...
