Only one day after their founding, a second group of Cleveland-based investors, led by the Pomeroy-Mandelbaum group, incorporated the Aurora, Wheaton, & Chicago Railroad Company. Pomeroy-Mandelbaum was the second largest interurban railway company in Ohio and intended to compete against the Everett-Moore group. A meeting between the Everett-Moore syndicate and Pomeroy-Mandelbaum group occurred in either 1900 or 1901 to discuss the future of the two companies. They came to an agreement: Everett-Moore would build and maintain the railways connecting Aurora to Chicago while the Pomeroy-Mandelbaum group would control railways linking cities in the Fox River Valley (eventually consolidating as the Aurora, Elgin and Fox River Electric Company [AE&FRE]). A third railway, the Batavia & Eastern Railway Company, was incorporated by the Everett-Moore group in 1901 to link the town of Batavia to the Aurora line. On March 12, 1901, all of the previously incorporated Everett-Moore companies were merged into one, renamed the Aurora, Elgin & Chicago Railway Company (AE&C). Three million dollars' worth of bonds were issued in 1901 to support track construction.