The 1846 state charter to the Pennsylvania Railroad diffused power within the company, by giving executive authority to a committee responsible to stockholders, and not to individuals.
By the 1870s, however, officers directed by J. Edgar Thomson (the Pennsylvania Railroad's President from 1852 until his death in 1874) and Scott had centralized power.
[3] After the election of Abraham Lincoln, Scott was one of number of railroad men who coordinated a special train for him through the Northern states prior to his inauguration.
[6] At the outburst of the American Civil War, Pennsylvania Governor Andrew Curtin called on Scott for his extensive knowledge of the rail and transportation systems of the state.
[7][6] The next year, despite Cameron's replacement by Edwin M. Stanton, Scott helped organize the Loyal War Governors' Conference in Altoona, Pennsylvania.
In one instance, he engineered the movement of 25,000 troops in 24 hours from Nashville, Tennessee, to Chattanooga, turning the tide of battle to a Union victory.
[9] During the American Reconstruction in the aftermath of the Civil War, the Southern states needed their economy and infrastructure restored, and more investment in railroads.
Federal assistance was sought by both special interest groups, but the Crédit Mobilier of America scandal made this difficult in 1872.
The financial Panic of 1873 and subsequent economic depression made it impossible to finance Scott's southern transcontinental railroad plans.
Scott still controlled the railway to Pittsburgh, where the pipelines of Rockefeller did not extend, but the two men were unable to come to terms on transportation costs.
In response, Rockefeller closed his plants in Pittsburgh, forcing Scott to enact aggressive pay deductions of workers.
Scott, often referred to as one of the first robber barons of the Gilded Age, was quoted as saying that the strikers should be given "a rifle diet for a few days and see how they like that kind of bread.
Ironically, Dr. Samuel Mudd, who had assisted President Lincoln's assassins, used it during his attempted escape from Fort Jefferson, Florida.