City, Iowa, about 50 miles, to be paid for in Milwaukee and St. Paul first mortgage bonds, secured by mortgage on the new line, and stock of the Milwaukee and St. Paul company. During a portion of the year 1868, up to the close of the year, the company operated the West Wisconsin road, as lessees. The same year an act was passed by the legislature classifying the directors of the road, and authorizing the bondholders of all classes, to cast one vote at all trustees elections for each $100 of the principal of their bonds.

December 31, 1869, the directors reported an increase of 92 miles in the length of the road, viz: from Sun Prairie to Madison, in May, 12 miles; a branch line from Conover, on the Iowa and Minnesota division to Decorah, 10 miles; a branch from Mendota to St. Paul, 5%1⁄2 miles; from Schwarzburg to Wauwatosa, about 6 miles, and from Calmar to Nora Springs, about 65 miles. Total, 917 miles. The St. Paul company continued also to operate the West Wisconsin road, extended from Tomah to Augusta, about 66 miles. The construction of the Sun Prairie extension was added to capital account, at $176,628.45-$14,719 per mile; the St. Paul branch, 51⁄2 miles, at $787,879.02 -$34,150 per mile; Decorah branch, 10 miles, at $116,999.56-$11,700 per mile; Schwarzburg to Wauwatosa, 6 miles, $163,891.05-$27,315 per mile. Other expenditures on construction and property account, increased the amount of expenditures to $1,630,533.18, in addition to $828,900 added to capital for stock dividends. Total cost of road at close of year, represented by stock and debt, was stated at $35,370,772, or about $37,800 per mile.

December 31, 1870, the directors reported an increase of 101 miles in the length of the road, viz: From Nora Springs to Algona, 61 miles; Austin to Mason City, 40 miles. Among the items of expenditures for the year added to total cost of road, represented by debt and stock, were the following: Second mortgage bonds, sinking fund, $72,000; new cars, $179,665; ten new locomotives, $126,450; purchase of Prairie du Chien Transit and Ferry ComCompany, $71,581; new buildings, turn-tables, etc., in Iowa, $84,182; new buildings at La Crosse, $73,172; new buildings at other points on the Missisippi river, $25,000; new freight house at Milwaukee, $22,613; additional depot grounds and stock yards at Milwaukee, $27,589; additional drawbridge at Milwaukee, $4,793; docks and canals at Milwaukee, $15,222; right of way, all lines, $15,663; winter bridge at Prairie du Chien, $15,850, and other items, making a total sum of $766,729, in addition to $828,900 paid for dividends in common stock, and $747,291 paid for dividends in cash and common stock.

Dec. 31, 1871, the company reported an increase of road. The cost of the whole road-1,018 miles-up to March 1, 1871, was thus stated: mortgage bonds, $18,183,500; preferred stock, $10,825,103; common stock, $11,822,878; total cost, $40,831,481. Previous to this date, the company had purchased $2,001,000 of the capital stock of the Western Union Railroad, and paid therefor $1,500,750 in the securities of the St. Paul Company. Deducting this last sum from the total stock and debt of the St. Paul Company, the balance of $39,330,731 represents the cost of the 1,018 miles of road owned by the Milwaukee and St. Paul-$38,650 per mile. From Dec. 31, 1869, to March 1,

1871, the increase in the total stock and debt of the company was $6,267,268. Nearly all this increase was thus apportioned: for purchase of road from Nora Springs to Algona, 63 miles, bonds, $1,008,000, preferred stock, $504,000 and common stock $504,000—total, $2,016,000-$32,000 per mile. For purchase of road from Austin to state line-11 miles-preferred stock, $176,000 and common stock $176,000; total, $352,000-$32,000 per mile. For purchase of road from state line to Mason City-29 miles-preferred stock, $400,000 and common stock $400,000; total, $800,000-$27,586 per mile. On Prairie du Chien Railway stock-preferred stock, $835,000 and common stock $833,000, total, $1,668,000. For purchase of Western Union stock, it being a majority of that stock at 75 per cent. in St. Paul common stock, $1,500,750. For diyidends on earnings of 1869, $828,900. For dividends on earnings of 1870, common stock, $747,291. Dec. 31, 1871, the total cost of the whole road, less cost of Western Union stock, was reported at $39,279.100, or $38,580 per mile. During the year, the company earned 7 per cent. net on its preferred stock, and over 6 per cent. on its common stock. It paid 7 per cent. in cash to its preferred stockholders, and deferred the dividends on the common stock, haying used the amount for this purpose in the improvement and acquisition of additional property.

January 1, 1872, the company leased the Oshkosh and Mississippi Railroad from Oshkosh to Ripon, 20 miles, paying as a rental therefor, 35 per cent of the gross earnings. The company also leased the Hastings and Dakota road, from Hastings to Carver, 48 miles, finished to Glencoe July 1, 1872, making 75 miles in all, paying as a rental therefor $1,500 per mile of finished road per annum, and subsequently purchased the same for $1,350,000 in bonds, and $750,000 in stock, $28,000 per mile. The company also purchased, January 1, 1872, of the Chicago and St. Paul Railroad Company, the line extending from St. Paul to Winona and La Crescent, then in operation from St. Paul to Winona, 103 miles, and not completed to La Crescent, 27 miles. The price paid for this road was £800,000 in 7 per cent. bonds of the company, payable in London in 1902, about $30,000 per mile. The company also purchased the Sabula, Ackley and Dakota Railroad, from Sabula to Marion, Iowa, 87 miles, paying therefor $1,485,000 in bonds, and $825,000 in common stock; total, $2,310,000, about $26,550 per mile. These purchases increased the length of lines both owned and operated by the company from 1,018 miles to 1,283 miles, exclusive of the Western Union, all leased road, and the contemplated road from Winona to La Crescent. The total cost of these 1,283 miles was represented by $23,965,000 in mortgage bonds, $10,825,777 in preferred stock, and $13,398,554 in common stock. Total, after deducting cost of Western Union, $46,689,081, about $36,390 per mile.

At the close of the year, 1873, the company owned the following road: Chicago to Milwaukee, 85; Milwaukee to St. Paul, via La Crosse, 324; Milwaukee to St. Paul, via Prairie du Chien, 405; Milwaukee to Portage City, via Horicon, 96; North Milwaukee to Schwarzburg, 6: Horicon to Berlin and Winneconne, 57; Watertown to Madison, 37; Milton to Monroe, 42; Calmar to Algona, 121; Conover to Decorah, 10; Austin to Mason City, 40;

Mendota to Minneapolis, 9; Hastings to Glencoe, 75; Sabula to Marion, 87. Total miles, 1,399. The company also owned 182 miles of side track. It also operated under lease the Oshkosh and Mississippi, 20 miles, and the Madison and Portage road, 39 miles making a total of 1,458 miles operated by the company. It also owned $2,001,000 of the capital stock of the Western Union road. The cost of the 1,399 miles, including equipments, supplies, bridges, and elevators, was represented by mortgage bonds to the amount of $26,262,500; preferred stock to the amount of $12,274,483, and common stock to the amount of $15,399,261. Total, $53,936,244. This sum includes the stock of the Western Union at $1,500,750 — leaving the stated cost of 1,399 miles at $52,435,494. Statements of earnings and expenditure, as reported by the company, are published in the statistical tables of this report. The amounts paid under the head of operating expenditures during the year, in addition to ordinary operating expenditures, were as follows: Renewal of track, $1,408,459.93; new bridges, $41,787,48; new buildings $62,411.89; new tools and machinery, $5,172.32; stock yard expenses, $8,348.76; Mississippi River Ferry expenses, $34,984.20; rent of locomotives, $2,220.00; rent of cars, $25,769.86; expenses elevator A. $4,687.01; expenses elevator B and C $5,228.99; expenses elevator D, $981.59. The weight of steel rails purchased, 6,103 tons, 278 tons of which were laid on the Chicago and Milwaukee Division, 5,725 tons on the La Crosse Division, and 100 tons on the Prairiedu Chien Division. The weight of new iron rails purchased during the year was 5,834 tons, 2,267 tons of which were laid on the La Crosse Division, 1,884 tons on the Prairie du Chien Division, 1,262 tons on the I. & M. Division, and 420 on the Northern Division. Re-rolled iron was also purchased and laid on the different divisions to the amount of 4,890 tons.

The rolling stock purchased and built during the year, consisted of 16 locomotives, at $256,381.65; 2 sleeping cars, at $21,797.69; 8 first class passenger cars, at $29,036.82; 4 mail and express cars, at $11,560.17; 300 box freight cars, at $225,117.29; 15 flat cars, at $8,571.88; 64 coal cars, at $40,478,37. Total $592,943.87. The total amount charged to new construction was $1,330,803.63, and consisted of payments for new locomotives and cars, La Crosse bridge, new fences, depot grounds and wharfs, new embankments, right of way, La Crosse freight burned, new buildings and grounds at St. Paul, La Crescent connection, Mississippi river ferry property, depot grounds at Austin, Sabula and Shakopee, local taxes, on purchase of Chicago and Milwaukee, St. Paul and Iowa and Minnesota divisions, construction of Chicago and Milwaukee division ($289,729.10), construction Hastings and Dakota division ($53,714.08), and construction of Illinois and Iowa division, $122,303.28. The total equip. ment owned by the company Dec. 31, 1873, consisted of 198 locomotives, 64 first class passenger cars, 32 second class passenger cars, 11 sleeping cars, 57 baggage, mail and express cars, 2,984 box freight and caboose cars, 671 flat and coal cars, and 2 boarding cars.

During the year 1874, no additional line was constructed. In February the corporate name was changed to Chicago, Milwaukee and St. Paul Company. In March, the directors authorized the execution and issue of a con

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solidated mortgage upon the entire property and franchises of the company, to secure the payment of bonds to the amount of $35,000,000. Of these, $26,225,000 were set apart to exchange for an equal amount of bonds previously issued and secured on different divisions of the road, and the remainder were to be used only “for the purchase of steel rails, the erection and completion of bridges across the Mississippi river, the erection of grain elevators at Chicago and Milwaukee, and the further equipment and permanent improvement of the mortgaged property." Also in March, 1874, the directors declared a dividend of seven per cent. on the preferred stock, from the earnings of 1873, and the same was paid from the new issue of consolidated bonds, in place of net earnings of 1873, used for the purchase of new steel rails and other improvements of the road.

RACINE, JANESVILLE AND MISSISSIPPI RAILROAD COMPANY (NOW THE WESTERN UNION.)

The original line proposed extended from Racine to Janesville. Before proceeding to the construction of the road the route was changed to the present line of the Western Union road. The construction of the entire line from Racine to Beloit was first contracted April 1, 1853, and the work was vigorously prosecuted until the death of the contractor in the following month of August.

January 2, 1854, another contract was made for the grading, bridging and masonry between Burlington and Beloit, about 42 miles. The work on this contract amounted to about $220,000, $95,000 of which was payable in the bonds of the town of Beloit at 95 cents on the dollar, and the balance in cash. A separate contract was made for ties. Depot grounds were secured in Racine and Beloit, the former including 15 acres of land and 3,000 feet of river front. The directors estimated the total cost of the road, fully furnished and equipped in all departments, at $1,340,000, or $20,000 per mile for the 67 miles from Racine to Beloit. To meet this cost the following resources were relied upon: Stock subscription, $619,100; stock towards construction, $50,900; first mortgage bonds, $670,000. Total resources, $1,340,000. The capital stock consisted of the following items: Racine city bonds, $300,000; Beloit bonds, $100,000: Delavan bonds, $25,000; Racine town bonds, $50,000; private subscriptions in Racine, $93,000; ditto in Beloit and on line, $51,100. Total stock, $619,100. In January, 1854, about $60,000 of Racine city bonds, and all the bonds of Beloit and Delavan had been negotiated, and over $37,500 had been paid on personal subscriptions. The details of estimated cost from Racine to Beloit, by the engineer, were as follows: Grading, masonry and bridging, $342,036; 6,2331⁄2 gross tons of rail on track, at $7,800, $486,216.90; chairs and spikes, $600 per mile, $39,648; ties, $58,113.75; laying track and dressing up, $400 per mile, $26,432; ballasting and raising track, $86,710; 31⁄2 miles of turn-outs, $37,710; eight locomotives, $72,000; eight

passenger cars, $16,800; four baggage cars, $6,400; 70 freight cars, $45,500; platform and gravel cars, $25,000; depot buildings, engine houses, etc., $40,000; engineering, superintendence and agencies, $35,000; right of way and fencing, $6,000 per mile, $66,080. Total cost of 66.08 miles, $1,383,646.65, or $20,938.96 per mile. The rails were calculated at 60 pounds per yard, with ties laid 27 inches from centre to centre, and the locomotives were to weigh 22 tons each.

FOX RIVER VALLEY RAILROAD.

The line of this road extended from Milwaukee via Waterford, Rochester and Burlington, down the valley of the Fox river, to the Illinois state line. In 1857 a conditional contract had been entered into with the Beloit and Milwaukee Railroad Company to connect the two lines at a point eleven or twelve miles from the city of Milwaukee, and leaving to this company but 311⁄2 miles to build from the point of connection to the state line. The subscriptions to capital stock at that date were: Individual subscriptions, $155,700; corporate subscriptions, $50,000; total, $205,700. Of this amount there had been received the following payments: cash, $15,260.92; farm mortgages perfected, $38,600; 8 per cent. bonds of town of Burlington, $35,000; 8 per cent. bonds of the town of Rochester, $15,000. Total receipts, $103,960. Disbursements of the company to the same date had been: for engineering, $5,142.24; right of way, $2,822.75; grading, $15,528.08; superstructure and bridging, $4,140.11; interest, discount, office, incidental and other expenses, $4,672.47. Total expenditures, $32,355-65. The resources for further operations were: Installments on stock called for and unpaid, $47, 964.08; installments subject to call 1857, $32, 775.00; installments subject to call, 1858, $21,000.00; farm mortgaged on hand perfected, $38,600; Burlington Bonds, $35,000.00; Rochester bonds, $15,000; Milwaukee city bonds, voted, $34,000; first mortgage bonds of road, at $10,000 per mile, $315,000. Total resources, $539,339.08. The cost of the road complete was estimated as follows: right of way, fencing, grubbing, grading, bridging and preparing road-bed for iron, $252,000; ties, chairs, spikes, laying track and ballasting, $55,125.00; iron, 60 lbs. per yard, $220,500.00. Total estimated cost-$527, 625.00-or $16,750.00 per mile. (Responsible partics offered to furnish everything above enumerated, and to do the work specified for less than $16,000 per mile, payable monthly in cash). The additional expense for interest, exchange, discounts on securities, engi neering, salaries of officers, depot grounds and buildings, locomotives, cars and incidentals, was estimated at $200,000. All these estimates for construction were based on actual explorations and survey, and were alleged to cover every contingency.