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Competition shouldn't be an issue, since farms will produce as much as is in demand (they auto-upgrade, unless you buy them yourself, to earn more from production), and cities don't need a ton of Corn, Milk and such to sustain and grow.
1. Go to options and select "Contour lines," (under "Game Play") if you haven't already done so. The contours reveal the terrain during track laying and station construction. You will find that there are paths on which to lay your tracks at less than 5% grade the entire way. Maybe twice the distance as a tunnel, but only costs a fraction as much.
2. While you're still in options, select "Scroll at screen edge" (under "Controls") so that you don't have to use the stupid and combersome "WASD" keyboard route in order to navigate on the map.
3. If you run short of money at the get-go, then go to your company screen -- then 3 clicks to the right 'til you get to the banking page, and take out two bonds which will get you about $600K cash money.
4. Don't worry if the resources needed by New York are close to competitors; just build a small station on the resources and start transporting them to New York. If the competitor complains then to hell with him/her.
Yeah I need to do that with Baltimore in the second campaign. Failed it twice now because the city jsut didnt wanna grow.
I also need to pay more attention to providing the goods necessary for the city to grow. In other words start setting up express rail lines with manual loading to ensure they are bringing enough goods needed.
Certainly not impossible as I've already completed it, as have a number of other players. Certainly doesn't need to be made easier as the challenge is to work out how to grow New York, so making it easy would ruin the challenge.
As to the specific challenges you mention:
1. 'The Tunnel to Syracuse?'
https://steamcommunity.com/sharedfiles/filedetails/?id=1444985757
I didn't build a tunnel to Syracuse, and I'm not sure why you needed to.
2. 'Baltimore needs cotton to grow.'
There is actually no requirement to grow Baltimore, and the suggestion that you need to grow it in order that it will accept lumber from New York is spurious and shows a lack of understanding about how city growth is determined. Bottom line is that export goods have little to no impact on city growth, only fulfillment of demand matters. So, forget Baltimore unless you need it to produce something that New York wants. In fact. I built a Paper Mill in Baltimore late game because New York wanted paper, but that decision was based upon what New York wanted not what Baltimore wanted.
3. 'Pittsburgh / Buffalo / Syracouse can only be reached by a very long route through the mountains near Baltimore.'
https://steamcommunity.com/sharedfiles/filedetails/?id=1444989309
I think you need to review your network strategy. I never even bothered going to Pittsburgh, its not a requirement to do so. The farthest I went was Buffalo and I just went round the mountains not through them. Which is you rightly say is far too expensive.
4. 'Alternatively, getting to Norfolk / Charlotte requires several bridges and is also a long route behind Washington.'
https://steamcommunity.com/sharedfiles/filedetails/?id=1444991350
Likewise the farthest south I bothered going was Norfolk and that was really unecessary. You really don't need a huge network to beat this challenge, which is basically a question of growing New York to 250k population. Everything else is gravy and is easy to achieve.
5. 'Both routes are capped off by chance by both competitors.'
You can basically ignore the competition in this scenario. They are annoying, but irrelevant. Let them squabble over the rest of the USA, all you need to focus on is growing New York, and that doesn't need a huge network so let them waste their money on growing one.
Conclusion
It sounds to me as though you set out to make this scenario as difficult as possible for yourself, and succeeded admirably. However, that isn't a justification for making it easier for everybody. Some of us like the challenge.
I think the key understanding required to complete this challenge is how to use warehouses effectively.
I used two warehouses to beat it.
https://steamcommunity.com/sharedfiles/filedetails/?id=1444999480
One in New Jersey supplied and re-distributed goods between New York; Baltimore and Albany.
The other in New York (State) supplied the city of New York; Albany and Syracuse.
https://steamcommunity.com/sharedfiles/filedetails/?id=1445002397
No tunnels were used at all in delivering their goods.
As for other resources they arent that far, you just need to be careful with track placement to avoid high cost caused by earth works, bridges and tunnels.
I suggest to start with passenger and mail trains and connect as many cities as possible. They will move much faster and will have much higher profit. That will help you get enough money.
Finally start to modify infrastructure for freight trains. At this time you will have trains strong enough to pull freight and given the amount of resources needed for new york, you can remove passenger&mail trains to free up the routes.
Didz - an impressive rail network in 1838, but what I'd like to see is your situation in mid and late 1830. It's the first two tasks that I find difficult.
https://steamcommunity.com/sharedfiles/filedetails/?id=1446407198
https://steamcommunity.com/sharedfiles/filedetails/?id=1446401669
I play at Normal. If I tried Trainiac, I'd probably fail the first task before connecting Albany . . .
Metropolis: September 1830
https://steamcommunity.com/sharedfiles/filedetails/?id=1446848029
This is the situation quite early in the game and at this point no tasks have been completed and the 'FoD' in New York is only 56%. So it hasn't started growing yet.
However, it shows my opening strategy which was to create a three station hub consisting of Baltimore (Meat); New York, and Albany(Beer). The issue right from the outset is that New York has a crap starting configuration with only a Sawmill and Furniture Industry and nobody wants Timber or Furniture this early in the game. So, to get New York growing you need to provide it with a steady supply of Beer and Meat, which is what I'm trying to do in the screenshot above.
Metropolis: November 1830
https://steamcommunity.com/sharedfiles/filedetails/?id=1446855649
This is the situation two months later and as you can see my initial strategy is working. A steady flow of Beer and Meat into New York has increased its FoD to 71% and the city is growing. It currently has a population if 62,203 and as you can see I am beginning to tag other rural industries that supply goods that New York demands and I've created small stations to reserve them. I think some of these may have been built to claim connection bonuses, as there is no immediate threat from competitors.
Metropolis: March 1832
https://steamcommunity.com/sharedfiles/filedetails/?id=1446868920
Mission accomplished! New York has reached a population of 102,448 with a current FoD of 69%.
I'm now focussing on the second task to deliver 100 clothing to New York and as you can see I've begun delivering cotton to Albany and I've bought a Textile Mill in Albany to produce the cloth.
Annoyingly Smythe has bought a Tailor in Baltimore. so I have no direct control over the manufacture of the clothing. However, I have created a Freight Line from the New Jersey Warehouse to Albany which is delivering goods to Albany and returning to the warehouse with cloth. I just need to complete the three way hub by linking the warehouse to Baltimore and clothing should begin to flow to New York.
Thats a bit more info than you asked for, but I thought you'd be interested in when New York hit 80k population. From memory I think it was actually early in 1832, as it was well over by September.
PS: Checking subsequent saves I think I reloaded after March 1832, because I notice that in later saves I own the Tailor in Baltimore. So, I must have lost the auction to Smythe and then reloaded and tried again once I had more money.
Getting that first set of objectives was done fairly easy. Even though you have no real output for the planks and furniture providing logs does help your growth. Providing 1 train of milk, 2 of grain, then the supply of meat and beer should be enough to finish that objective.
Where I keep struggling is the supply 100 clothing. New York simply refuses to create demand to ship it in. Then depending upon the competitors and random industries it becomes a pain to get a good set up for cloth and clothing. Mostly because a large quantity of cloth gets eaten by New Yorks demands.
I think the big key is having enough capital or bond slots free to buy and place the necessary industries. Like placing a meat factory in Baltimore at the start is great. However that can deplete your funds enough that you are unable to place the alcohol and cloth factories in Albany/Syracuse.