Library of Formatting Examples:Italics/25A

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York. Mr. Monett instituted a series of descriptive and illustrative
announcements developing the <i>Mohawk Valley</i>,
through which the New York Central runs, as being "<i>the
really most beautiful</i>" route, passing through the scenery
of the romantic valley of the Mohawk and the mountain
heights of the Hudson with all the advantages of <i>"a water-*level
line" following the coursings of the Mohawk and
Hudson Rivers</i>, and so giving a perfect night's rest.

Quotation marks

The quotation marks around "the really most beautiful" go outside. But for "a water-level line...", the quotation marks go inside, because they are there to emphasize a term, rather than as an actual quotation. Also, placing them outside would require closing and re-opening the italics, when the author obviously intended to emphasize the entire phrase.