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HAMILTON & PORT DOYER RAILWAY.

•♦•

REPORT

OF THE

PRESIDENT AND DIRECTORS

TO THE

SHAREHOLDERS.

PBINTBD AT THE " SPECTATOR OFFICE, COURT HOUSE SQUARE.

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HAMILTON & PORT DOVER RAILWAY.

DIRECTORS' REPORT

TO THE SHAREHOLDERS AND THE CITIZENS OF HAMILTON AND
THE PUBLIC, GENERALLY, INTERESTED IN THE LINE.

Shortly after the election of the present Board of Directors,
on the 11th day of June last, they issued an address to the citizens
of Hamilton, and other Municipalities interested in the construc-
tion of the Hamilton ane Port Dover Railway, in which they set
out the prominent features of the Line, and the advantages which its
construction promised to this City and the Country through which
it will pass. The appeal then made for public aid to a work
which, in the opinion of the Directors, promised such important
advantages to this City in particular, as well as the people on the
line, was immediately responded to by a unanimous vote of the
then City Council of £50,000, to be invested in the Company's
Stock, which vote was, with but one dissenting voice, confirmed
by the rate-payers at the public meeting called for that purpose.

The Village of Caledonia, following the example of our City,
subscribed £10,000, under the Municipal Loan Fund Act, which
however, being exhausted, that Municipality )C obliged to change;
and a new by-law iu< » (j piuu ewt4wfe«> ( the rate-paye^ Jfor that
purpose. A^tu /tA^t-J /tc^-^^^-x^-e^tC -rt^LT^a^iuZ^^Z e^

The Township Council of Walpole, also voted for subscribing
£15,000 to the Capital Stock of the Company, which, however,
was not confirmed by the rate-payers, owing to the divisions which
existed among them on account of the uncertainty of the route,
which the line might tal'e through their township. Since the
location of the line, the directors have assurances that a majority
of rate-payers will redeem the character of their Municipality, by
a liberal grant towards a work in which they have a deeper in-

terest, if possible, than any on the line. In addition to the Mu-
nicipal subsciptions alluded to, there has been £33,800 of private
Stock subscribed, which amount the Directors still hope to in-
crease considerably. To this may be added £60,800 agreed to be
taken by the contractors, Messrs. Moore, Pierson & Co.

The progress which the Directors made at the commence-
ment in obtaining subscriptions to the Stock of the Company was
such as, in their judgment, warranted them in employing the ser-
vices of a competent Engineer, to make surveys and report upon
the best route for the location of the line. They accordingly en-
gaged John L. Hodge, Esq., a gentleman who has had much ex-
perience in locating and constructing Railways, both in Britain and
this Country, where he has been several years engaged in his pro-
fession as Civil Engineer. Mr. II. was at first ordered i^ survey
two routes — one by Caledonia and the other by Cayuga ; and sub-
sequently a third via Waterford and Simrae. The great length
of the latter line over the others, however, precluded the Directors
from entertaining it as a feasible route.

The leading facts contained in Mr. Hodge's report will be
iound embodied in the present statement of the Directors.

The cost of these several surveys, together with £1,300 paid
to R. G. Benedict, Esq., for a survey made by him under a former
Board of Directors, amounts to £2,702 lOs 2d. The Directors
have in addition to this sum, expended (chiefly in purchasing right
of way, and land for the purposes of the Railway,) £2,862 Is
which also includes printing. Parliamentary, and Office expenses
and salaries, and makes a total expenditure of £5,565 Os 2d.

The late period at which Mr. Hodge was able to complete
the several surv^s referred to, and the fact that the Company's
charter would expire in th^aaen th- ef" A pril, unless £50,000 were
expended by that time, prevented the Directors froiia taking any
further active measures for endeavoring to put the Stock list on
such a footing, as to warrant the commencement of the work, un-
til an Act of the Legislature should be obtained to extend the time
for such outlay. This Act, the Directors are happy to say, receiv-
ed the Royal assent on Friday, the 16th instant, and they are now
enabled to re-commence operations. But before doing so, they have
deemed it proper to submit a full statement of their proceedings
up to this time, as well as to lay before the Shareholders and the

B Mu-
rivato
to in-
itobe

nence-
ly was
he ser-
upon
gly en-
uch ex-
am and
lis pro-
survey
nd sub-
length
irectors

will be

00 paid

1 former
directors
ing right
J,862 Is
expenses
2d.

Bomplete
•mpany's
DOO were
iking any
ek list on
work, un-
i the time
ly, receiv-
Y are now
they have
'oceedings
rs and the

public interested, a recapitulation of the arguments in favor of the
line.

In the month of January, the Directors having received com-
plete plans and specifications from their Engineer, and feeling
that unless they had somf) substantial reasons to offer to the Leg-
islature in favor of the extension of their Charter, as well as to be
prepared for an early commencement of the work, unanimously
resolved upon letting the construction of the whole Line to some
thoroughly practical and responsible firm of Contractors. They
accordingly advertised for tenders, and ten different parties made
offers for doing the work. After mature consideration, and tho-
roughly weighing the character, responsibility and practical expe-
rience of those who tendered, as well as the prices specified, the
Board decided, with only one dissenting voice to award the con.
tract to Messrs. Moore, Pierson & Co., already so favourably
known in this city ; the tender of these gentlemen being the lowest
but two, of thos ejhat were admissable. The following extract
from the contract entered into will show the nature and extent of
the work to be performed by the contractors. "And it is h*iveby
declared, that i<he work intended to be comprised in the co tiact
shall consist of all the necessary excavations, piling, embankments,
masonry, bridging, trestle work, culverts, ditching, draining, coffer
dams, bailing, road crossings, cattle guards, fences, superstructure,
grading and ballasting, clearing and grubbing, with all necessary
sidings as herein atter provided, passing places and switches, and
all other matters for completing a first class Railway, with the
exception of the Machine shops, water tanks. Station Houses, turn
tables, wood sheds, engine houses, and all other buildings, iron
rails and rolling stock, which are not intended to be comprised
herein."

The work to be performed by Messrs. Moore Pierson <Se Co.,
as above stipulated will cost £304,050, and the excepted items are
estimated to cost about £135,700 making the total cost about
£439,750 for completing the whole line 40^ miles ready for
traffic. When we take into account the heavy work of nearly one
fourth of the line, namely in reaching the summit of the mountain
and crossing the Grand River, including a high and expensive
bridge to admit of Steamers and other craft passing under, so as
to avoid a draw bridge, the Directors consider the terms of the

contract most favourable for the interests of the Company, and the
more especially so, as the contractors have agreed to take £60,800
of stock in payment, which their means will enable them to hold,
without selling it at rates which might injure its value in the
market.

The cost of the whole work, upon the basis of the contract
with Messrs. Moore, Pierson & Co., (which has been very carefully
drawn, so as to avoid, as far as possible, all charges for extras)
will not exceed the estimates of either Mr. Benedict, or Mr. Hodge,
and will compare favourably with the cost of other lines in this coun-
try and the United States.

As to the quality of work and material the contract stipulates
as follows, that the contractors " shall construct and complete, in a
good substantial and workmanlike manner (and at least in as good
and substantial a manner in all respects as the Great Western
Railway,) the Hamilton and Port Dover Railway, &c., <fec.

The Directors beg to state that they have already made con-
siderable progress in securing the right of way, and have found a
number of the proprietors of land on the line disposed to deal
fairly and honorably in disposing of what the company requires.
Many of them having a just appreciation of the importance of the
undertaking, to their local interests, and believing that it will prove
remunerative, have agreed to accept stock in payment. This
enlightened feeling which has characterized the landed proprietors
in the United States so generally, it is to be hoped will be partici-
pated in by others on this line.

WAYS AND MEANS.

Setting the cost of the Railway and rolling Stock complete
at £439,750, it will be necessary to make allowance for discount
on bonds and interest during construction. These items cannot
be estimated at less than £45,250. It will, therefore, be neces-
sary to make provision for £485,000. With the present sub-
scriptions, and what may be reasonably relied upon being obtain-
ed from the Southern Municipalities interested, the Directors
hope to raise the Stock list to £200,000, without further
recourse to this City. Before, however, they would feel them-
selves warranted in commencing the work, they conceive
that the Stock subscription should reach about one-half of

the cost, so as to form a safo basis for tho issue of bonds,
upon which to raise the remainder. Upon such a basis the
Directors have received through their President, and also through
correspondents in London and Paris, assurances of being able to
negotiate tho Company's bonds upon favorable terms, to the ex"
tent of £260,000 to £300,000, so as to obtain a portion of the pro-
ceeds to expend along with the Share Capital. The only quarter,
at present, to which the Directors can look for further aid than
that referred to, is the Municipality of Hamilton. As the Stock
at present held by the City in the Great Western Railway, is like-
ly to prove a source of large profit, no one will question the abili-
ty of tho Cit, to subscribe an additional £50,000 or £76,000 in
the Stock of this Company. With such further aid, the Directors
can now see their way clearly to a vigorous prosecution of this
most important work for the interests of this City, and of the
South- Western Country.

SOURCES OF BUSINESS.

As a general thing, short lines of Railway do not prove re-
munerative to the Shareholders. It will, however, require but
little argument to convince, even the most incredulous, that the
Hamilton and Port Dover Line is an exception to this rule. —
Where short Lines connect important centres of commerce, or
form links in long Lines of intercom munication, they are just as
certain to command a paying business as the longest Railway in
existence. It would be quite as reasonable to assert that all long
Lines are profitable investments, as to argue that all short ones
are unproductive. After all, the only safe way of estimating the
value of a Railway, or any other line of transit, is by the connec-
tions it is intended to make, due regard being always had to the
course of trade.

Let us now apply these general principles to the Hamilton
and Dover Line, and inquire what are the objects which will be
attained by its construction ? These may be set down under four
heads.

1st. To facilitate and increase the local traffic.

2nd. To secure a portion of the freight and passenger busi-
ness of the Buffalo and Lake Huron Railway, and of the Grand
River.

3rcl, To form a connection with tho proposed Great-Southern
Railway.

4th. To form a great Line of communication between Lake
Erie and Ontario.

As these are four distinct sources of business, it will be pro-
per, briefly, to consider each one in turn.

LOCAL TRAFFIC.
As yet, we are obliged to draw our estimates of traffic chief-
ly from the Railways in the United States, where the circumstan-
ces of trade and travel very nearly correspond with those of this
country, and where a larger experience has furnished more reliable
data than can yet be found in Canada. It has been ascertained in
New England, where several thousand miles of Rail way have been
opened long enough to developc the traffic of all kinds, that each
inhabitant contributes annually, on an average, $3 to the gross re-
ceipts for local traffic of all kinds. Applying this rule to the Ham-
ilton and Port Dover Railway, the Directors, in their Report issued
in June last, estimated tho population that would be tributary to it,
when it should be one year in operation at 110,000, which would
contribute $330,000 a year. Although this result might not be
realized the first, or second years, that the line shall be in operation,
there is no reason to doubt that it would bo in four or five years,
which is a period necessary to develope the local business of any
Railway. Let us apply the results thus far ascertained from the
opera-tions of the Great Western for the two years it has been
open for traffic, up to the 31st January last, and which does not
include the Toronto Branch, subsequently amalgamated.

Gross Local or Way Traffic of the Great Western

Railway.

Years ending, Passenger, Freight, Total,

3l8t January, 1855. .£126,890 £55,315 £182,205

31st " 1866.. 159,960 102,341 262,301

Increase £33,070 47,026 80,096

In order to show that there was no special cause for this
large increase in the local receipts of that Company, except the
natural developement of the business of the line, the Directors,
in their last Report, say, " It is satisfactory to observe that the
increased traffic of the last ha If-year has been confined to no one

•ource, but that eaoh dopartinont of tho Compuuy's buBiness has
cuntributod to the gross increase."

It may now bo conCidently assumed that this hieio.so will
continue and be maintained for several years. For the three
months of the current year, which have elapsed, it has been con-
siderably exceeded. The following table will shew what tho
local receipts may be oxpectcd to reach, during the next three
years, at the same rate per annum, and assuming the same num-
ber of miles to be in operation :

Ycara oiiding.

31st Jan., 1856.
dlHt " 1860.
8l8t '• 1867.
8l8t " 1868.
Slst " 1869.

Grosa Uecoipta
Local.

£182,205
262,300
340,390
419,450
498,640

Receipts Would (?ive to the H. «& P't.

per mile. Dover Railway, (40 miles.)

£ 750 Istyoar, £80,000.

1,083 2nd " 43,320.

1,312 3rd " 66,480.

1,740 4th " 69,600.

2,068 6th " 82,728.

It may be questioned by persons unacquainted with the his-
tory of Railway Traffic in other Countries, whether this increase in
the local traffic receipts of the Great Western will be maintained for
so long u period as three years more. If it would not occupy too
much space, the Directors might bring an overwhelming muss of
evidence from the results of railways in other Countries, to
show that what they have predicated upon the operations of
the Great Western, is only what has occurred in a hundred
other cases. It will not, therefore, be in the least surprising to
ace the receipts of the Great Western, from local traffic alone,
reach £600,000 for the year, which will end on the 31st January,
1859, or about double the amount estimated for the entire gross
receipts for local and through traffic before the line was com-
menced.

The following table shewing the gross receipts of the New
York & Erie Railway for five years from its opening, is given as
an example of yearly increase :

1851 $2,359,870 70.

1852 3,537,766 53.

1853 4,318,962 36.

1864 5,369,958 63.

1856 5,488,898 37.

Again, it may be argued that the Country traversed by the
Great Western, is a richer and better settled country than that
which will be tributary to the Hamilton and Port Dover Line. —

I t

ii;

Such an argument, however, could only be adduced by per-
sons unacquainted with the facts. There is probably no part of
Canada so fertile, or so well peopled, with an enterprizing, intel-
ligent and hardy population, as the Counties of Norfolk and Hald-
imand. There are, besides, a number of rising Towns and Villa-
ges on, or near, the line — such as Caledonia, Port Dover and
Simcoe, besides numerous smaller ones. In fact, this fine country,
so little known to the citizens of Hamilton, only requires to have
proper facilities for reaching our markets, to become the garden of
Canada. It must be recollected that a very large extent of coun-
try on the Great Western Railway was a perfect wilderness wben
that line was opened, and that probably thirty or forty miles of
it is of such a swampy character as to preclude the prospect of
its being settled during the present generation. On the other
hand,there is scarcely a hundred acres, for many miles on both sides
of the Dover line, that is not either already under cultivation, or
susceptible of it.

THE BUFFALO AND LAKE HURON RAILWAY AND

THE GRAND RIVER.

The second source of business for the Hamilton and Port
Dover Railway will be that to be drawn from the above line. It
will obviously be the interest of that Company to make their con-
nection with Lake Ontario, by the Hamilton and Port Dover
Railway from Caledonia, inasmuch as it will enable them to use
between 26 and 30 miles more of their own road for all freight
north west of Paris, bound for Lake Ontario, instead of shunting it
on to the Great Western at Paris. Indeed by the time the Dover
line is completed the traffic of the Great Western will be so large
as to render it the less desirable for that Company to even com-
pete for any part of the freight passing to market over the Buffalo
and Lake Huron Railway. It will also open up a more direct
communication by way of Caledonia between this City and the
enterprising town of Brantford, us well as all the intermediate
Country between that town and Fort Erie and Hamilton. By
this route we shall also have opened up a more direct trade with
Buffalo as well as with Lake Erie via Dunville. It may be inter-
esting to state the fact, that, during the time that the Buffalo and
Brantford Line was in operation, freight was frequently brought

AND

by it, from Buffalo to Caledonia, and thence by teams to its desti-
nation in this City. A considerable portion of the heavy iron
castings, used in the construction of the Anglo American Hotel
were brought to this City, by the above route. That these two
Railways, will be important feeders to each other no person
acquainted with the trade of this country can doubt ; and that a
very large amount of business will flow from that source upon the
Hamilton and Port Dover Line, advantageous alike to this City
and to the Company, cannot be doubted.

The Grand River will also contribute more or less to
this line. The large lumbering and milling interest for many
miles above and below Caledonia are not unworthy the con-
sideration of the business men of this City. Timber and
lumber have, of late years, greatly risen in our market,
owing in part to the distance it has to be teamed. There can be
no doubt that a very large business will be done by the Railway
in sawed lumber, drawn from the Grand River. The following
extract from the Directors' report last June will more fully eluci-
date the subject.

" The Lumber Trade of the Grand River, which will centre at
Caledonia, has become of such importance and magnitude, that it
merits special notice. The demand for lumber at Chicago, has
already had the effect of drawing the supplies from the Grand
River, so that the manufacturer has the choice of two great mar-
kets open to him. By means of the Hamilton and Port Dover
line, the great staple product of this section of Canada, may be
delivered with equal facility at Hamilton,where what isnot required
for local consumption, may be shipped to Eastern markets by way
of Oswego ; or via Port Dover, to supply the western demand."

THE GREAT SOUTHERN RAILWAY.

Perhaps one of the most important features in the Hamilton
and Dover line, consists in the connection that it will form between
the Great Southern Railway, which will undoubtedly be built
without any great delay, and Lake Ontario at Hamilton. The
Directors do not know that they can state the value of this con-
nection more forcibly than they have already done in the report
just referred to, which they therefore quote.

" The next thing to be noted, is the fact that the population of
the Southern tier of Counties, bordering on Lake Erie, now

amounts to nearly 200,000.* This tract of country, which is un-
provided with railway communication, is over 200 miles long, and
of an average breadth of 20 miles. In the fertility of its soil, the
mildness of its climate, and the industry and energy of its inhabi-
tants, it is equal, if not superior, to any other given tract of equal
extent in the Province.

Hitherto, but a small share of the products of this fine sec-
tion of country, have found their way to our market, for want of
means of transit. A small amount of merchandize may have been
supplied by our merchants ; but, limited as our commercial in-
tercourse has been with the shores of Lake Erie, it will be seriously
affected by the Buffalo and Lake Huron Railway, which will cut
us off from much of the business south of the Grand River.

The Directors have the strongest reason to believe, that in
less than three years, what is called the Southern Railway, will be
completed. This line, as everybody knows, will extend from the
Niagara to the Detroit River, and will pass through the very
heart of the tract of country referred to. It is almost too obvious
to need remark, that when this Southern line shall be completed,
the entire commerce of the Southern Counties, with all their nume-
rous towns and villages, and a population of 200,000 souls, will
be lost to this City beyo'id retrieve, unless we put forth great ef-
forts and construct the line from here to Dover, near which a con-
nection will be had with it at a favourable point. With such a
connection, it can be demonstrated almost to a mathematical cer-
tainty, that nearly, if not quite, all of the heavy freight traflSc of
this line must flow to this City.

In order to establish this position and make the matter clear-
ly understood, it is necessary to state the well-ascertained fact that
the bulk of the freight traffic through the State of New York, is
retained by the Canal, notwithstanding the active competition of
the two great lines of railway, and the great loss of time by the
former as compared with the latter. Now, as New York has be-
come our chief market, the same rule applies to our commercial
intercourse with that City. The bu'k of our freight, consequently
passes through the Erie Canal, either by way of Buffalo or Oswego.
If by the former ten days are required to go to, or from tide
water at Albany ; whilst by the latter route only five days are
consumed. The distance from Hamilijn, or Niagara to Oswego,
by steamboat, is now accomplished in a single night, so that these
places are, in point of time, fully four days nearer to our chief
market than Buffalo. With such an advantage, it will not be sur-
prising, hereafter, to see freight transported from Fort Erie and

* W. Scott, Esq., Civil Engineer, in his Report upon the Southern
Railway, estimates the present population, that would be, more or less,
benefited by it, at 180,000. By 1860 it will, no doubt, amount to 226,000
to 250,000.

^^ 11

Port Colborne, to H:.milton or Niagara, by rail, in order to gain
time, by taking Lake Ontario. This fact being established, the
question, as to the relative claims of Hamilton and Niagara, for
becoming the entrepot for Southern Canadian trade, presents
itself.

In reference to this point, the facilities of transport being
equal to both places, the superior advantages of Hamilton in size,
wealth, and population, and as the established centre of Western
Commerce are such, that there would be nothing to fear from the
competition of her would be rival. But, with the Southern Rail-
way built, nearly the entire freight of the Southern Country and
of Lake Erie and the Western States, flowing over it, must,
of necessity, centre at Niagara, or the Suspension Bridge, and none
of it can reach Hamilton^ unless the Port Dover Line he constructed.

With both these Railways completed, let us see how the
matter will stand. The distance from the point of mtersection to
Niagara, via the Suspension Bridge, will be about 84 miles, or
the same as by way of this City, whilst, from the same point
to Hamilton, it is only about 34 miles. The distance in favor of
Hamilton will then be 60 miles, and the charges on freight are
the same on the Lake, whether to or from Hamilton, Toronto, or
Niagara, and the difference in time by Steamers only two and a
half hours.

The actual cost of carrying freight on the Railways of New
York, to say nothing of the profit, has been found to be about 80
cents a mile for an ordinary train of 1V5 to 200 tons. It would
therefore cost $40 more, to move an ordinary freight train be-
tween the point of intersection and Niagara, than between the
same point and Hamilton. These facts, i'j is conceived, settle
ihe question as to the superiority of this City, as the entrep6t
for South- Western Canada, as well as for such foreign commerce
as may be carried on through this part of the Province.

If these arguments are sound, and it is thought they do not
admit of denial, it will follow that the great bulk of the produce
freight of the Southern Line, during the season of navigation, will,
as in the case of the Great Western, find its way to Eastern
markets through this City and by Lake Ontario, and the returning
trains will carry bick a proportionate quantity of merchandize.—
The Directors are unable to state the proportion of the Great
Western freight traffic received from, and delivered to vessels
navigating Lake Ontario ; but it is generally understood to be,
during navigation, far greater than that which is carried on by
way of the Suspension Bridge.

In addition to the freight business that may be confidently

I ;l ■

relied upon being drawn from and delivered to the Southern Line,
there will be a very considerable passenger traffic. The popula-
tion of the Southern tier of Counties will find Hamilton and
Toronto their favorite markets and places of resort for the trans-
action of business, and for recreation and pleasure ; and as all
business, whether freight or passenger, drawn from or given to
the Southern Line of Railway, will pass over nearly the whole
length of the Hamilton and Port Dover Line, it must prove a
source of large profit to the latter Company, ae well as to the
former.

LAKE ERIE.

The following extract from the Report before quoted, will
sufficiently explain the nature and extent of the business that may
be expected to be done between the two lakes by means of the
Hamilton and Port Dover Railway :

" In addition to these extensive sources of business, the trade
between the two lakes, that will flow over our line, will doubtless
be very great. This trade has so increased that the Welland Canal
is quite inadequate to its wants. Formerly a vessel coul'^. pass
through this Canal in from 20 to 30 hours. It now requires a
whole week, and this route has become nearly as tedious as that
by the Erie Canal, via Buffalo. It has been shewn that a cargo of
wheat or flour, leaving Cleveland in the evening by steamer, and
arriving at Port Dover in the morning, may be again set afloat on
Lake Ontario, by means of our Railway, the following evening,
and be delivered at Oswego the next morning. This may seem

*^ incredible ; but with the improved means of transhipment, by
Steam and Water power, it is perfectly practicable. We may,
' therefore, confidently count upon a large trade from all parts of
the thicklv settled shores of Lake Erie, and for the establishment
of one or more daily lines of first class Steamers, in connection
with the Hamilton and Port Dover Railway, between Port Dover
and Cleveland, which is the mouth of the great Ohio Canal, as well
as to other points on the Lake. In addition to the advantages
possessed by Dover, as a point of connection between the two
06 Lakes^lready stated, it is nearly 100 miles higher up the Lake

^ than Buffalo, and is open several weeks earlier than the latter
in Spring, and also avoids much of the perilous navigation of that
stormy Lake. It is, besides, opposite the great coal fields of Penn-
sylvania and Ohio, whence cheap and inexhaustible supplies of
Coal will be afforded to the Province. As a freight line, the
Directors of the Hamilton and Port Dover Railway Company
believe that its importance cannot be over estimated — and it is this

I M

ilL

lern Line,

e popula-

ilton and

he trans-

nd as all

given to

he whole

t prove a

as to the

)ted, will
that may
ns of the

the trade
doubtless
nd Canal
>ul'^ pass
squires a
s as that
1 cargo of
mer, and
afloat on
evening,
ay seem
nent, by
V^e may,
parts of
lishment
►nnection
rt Dover
I, as well
vantages
the two
lie Lake
he latter
n of that
of Penn-
•plies of
ine, the
ompany
it is this

;

class of business that contributes most largely to the growth and
wealth of towns and cities. The carriage of passengers through
a country adds but little to the general wealth, although it is
valuable as a means of profit to Railways.

" There is no reason, however, to doubt that this line will have
a large passenger as well as freight traffic. It is a universal law
of commerce, that the movement of passengers is always more or
less influenced by the general course of trade. If Hamilton be-
comes the entrep6t f >r Southern Canada and the Shores of Lake
Erie, those who conduct the business of the various localities will
necessarily be frequently drawn here, and our business men will
have constant occasion to visit the sources of business. Thus,
in addition to local, we may count upon a large through passenger
traffic."

As it has been doubted whether any considerable amount of
freight can be profitably transhipped and passed over by Railway
from one Lake to the other, a few facts may be adduced, which
will place the subject within the comprehension of every person
who will take the trouble to examine it. The most important
articles of transit are grains of various kinds. These, it has been
ascertained, can be raised by steam or water elevators from the
holds of vessels, and discharged in bulk into grain cars at a cost of
less than one-Jith of a cent per bushel. This is what the Directors are
assured by persons engaged in the business, is the actual result of
the Steam Elevators used at Chicago and other places. An Engine
capable of raising from the holds of vessels 100,000 bushels per
day, it is estimated, can be worked at a cost of $25 per day,
this would leave tL75 to apply on labor to feed the Elevators in use • ^^ /-,
and for incidentfllexpenses. The actual charge made by the Steam f /^
Elevator Companies at Chicago, for raising grain, is half a cent per /
bushel, which includes five days' storage and the Companies' profits,
which are said to be large. This profit would, in the case of the
Hamilton and Port Dover Railway, constitute a part of that Com-
pany's profit. Let us see what it would actually cost to unload at
Port Dover, and reshlp at Hamilton, a cargo of say 10,000 bush-
els of wheat or com.

Elevating into Warehouse, at 1 -5th of a cent

per bushel £5

Loading and discharging Cars by Schutes, at

same cost 5

Total cost of transhipment iJlO

If the same cargo were taken through the Welland Canal, the
figures would stand thus, computing the wheat at 37 bushels per
ton.

Canal Tolls on 270 tons Wheat, at 2s 3d per ton,£ 33 15

5 days Interest on cargo valued at £2,500, 2 5

Cost of towage, (average,) say 10

6 days expenses of Vessel, (always calculated

and added to charge on freight,) at £9 per

day, 64

£100

Deduct expense of transhipment to and from

Railway, 10

Leaving in favor of latter, £9J

i I t

Equal to 3 3-5 cents a bushel, which would, of itself, constitute
a sum sufficient to pay the cost of transit deterioration of rolling
Stock, and leave a handsome profit to the Company, and which
might probably be reduced after a large business has been estab-
lished.

It will be seen by these statistics, which every one acquaint-
ed with the forwarding business on the Lakes, can verify as a
pretty close approximation to the truth, that so far as the trans-
port of grain is concerned, the Hamilton & Port Dover Railway
will be able to compete with the Welland Canal, even if the tolls
were entirely abolished. There is no doubt but that flour, coal,
and many other kinds of freight, may also be profitably carried
over the Railway, if only proper appliances are adopted to save
labour in removing it from the holds of vessels to the trains of
cars, and vice versa, especially during the seasons when the canal
is most overtasked. The following tables will give some idea
of the magnitude of the grain trade carried on through the
Welland and Erie Canals, which the Railway may profitably com-
pete for at prices as low, or lower, than the cost and charges above
enumerated for barely passing the Canal.

Canal, the
usbels per

33 15

2 5

;9j

constitute
I of rolling
and which
leen estab-

i acquaint-
erify as a
the trans-
r Railway
f the tolls
lour, coal,
ly carried
d to save
i trains of
the canal
some idea
ough the
ably com-
ges above

Statement of the quantity of the following articles passed through
the Welland Canal during the years 1854 & 1855—-

1854. 1855.

Wheat, Tons, 76,961 166,620

Corn, " 113,463 115,148

Flour, " 40,022 27,828

Oats, « 10,371 5,776

Total, 240,697 315,271

Total traffic. . .767,210 849,333

Statement of the quantity, in bushels of Wheat and Flour shipped

at Buffalo and Oswego by Canal, from 1835 to 1856, inclu-
sive, the Mour being reckoned at Jive bushels to the barrel.

Year. Buffalo. Oswego. Total.

1835 672,427 669,067 1,341,393

1836 999,980 585,559 1,585,538

1837 1,084,475 340,036 1,424,510

1838 2,321,217 440,200 2,761,417

1839 2,405,849 658,160 3,064,000

1840 4,081,265 665,389 4,746,604

1841 4,450,565 735,249 5,185,814

1842 4,500,265 643,157 5,143,422

1843 6,104,064 1,154,909 7,258,973

1844 6,042,004 1,895,494 7,937,498

1845 4,946,451 2,016,487 6,980,928

1846 10,069,734 2,790,036 12,859,770

1847 15,533,117 3,766,001 19,099,118

1848 10,182,790 3,874,430 14,057,270

1849 9,115,040 5,104,997 14,057,270

1850 8,226,847 5,575,742 13,802,589

1851 9,199,762 6,116,868 15,317,533

1852 9,554,851 7,315,424 16,870,276

1853 8,250,638 8,783,293 17,083,931

1854 4,252,307 1,861,265 7,113,672

1855 7,633,531 4,691,662 12,325,193

It is only a few years since the enlargement of the Welland
Canal was completed. At that time it was supposed that its ca-
pacity for business was such as to meet the in^teasing wants of
the Western trade, for half a century. This capacity it has alrea-
dy been ascertained, is unequal to the demand for transit, and both
the Welland and Erie Canals, with the two great lines of Rail-
way through the State of New York, are taxed very nearly to their
utmost. In view of these facts, it is evident that, as the transit

ill

business betv^een the East and the West is every year increasing
in an accelerated ratio, there must be new channels opened to
meat the future requirements of this vast commerce. It would be
difficult to project a better avenue for sharing this most profitable
business than the one which will be afforded by the Hamilton &
Port Dover Railway, and which will at the «ame time possess so
many other sources of business in addition to that of opening a
new and easy transit between the two Lakes. If this Railway
proves as successful in competing for the trade of Lake Erie as its
friends believe it will, and the facts seem to verify, it will be the
means of raising both Hamilton and Dover to rank amongst the
most important shipping ports on the Lakes ; and a double track
will be required in less than three yeais after it is opened, to do
the business that will present itself.

ESTIMATED PROFIT.

It is no doubt a difficult matter to estimate the probable
profit that may be expected to result from a railway, drawing
business from so many sources as those enumerated. The history
of railways nowhere presents a parallel case of a short line having
so splendid a field for local business, and at the same time, forming
so many promising railway and water connections. Neither in
the old, or in the new world, do two other such lakes as Erie and
Ontario, teeming with so vast a commerce, seeking transit from
one to the other, exist.

With regard to the local business, it has been shown, that
after the line has been open long enough to develope this source
of traffic, say 5 years, at least £80,000 a year may be counted upon
from it. The Great Western working expenses are estimated at 60
per cent of the gross receipts. As the heavy freight trains on the
Hamilton and Port Dover Railway will be moved upon a down
grade and the light ones up, there is no reason to believe that the
working expenses of this line will be greater for the first two or
^c«-6 three years. T^j^^^henliiWoul^give £40,000 a year of profit, equal
Jlcuu^^,jf^4^ *® ®'8^* P®'^ °*"^' upon'dE600,000.

If it be assumed that the business that will be drawn from all
the other sources enumcBAted only equal the local traffic, instead
of, as will probably Wthe case, greatly exceeding it, and taking
the ratio of increase/predicated upon the two years' operations of

'^.

^-^^^-'^-^i^O-t^

the Great Western, the earnings for the first five years would be

as follows, taking the working expenses at 55 per cent of the gross

receipts.

Earnings Gross Working Leaving Percentage on

per Mile, Earnings. Expenses, with profit. Cost £600,000.

1st Tear, £1,512 £60,480 56 per cent. £80,000 6

2ad " 2,16« 86,640 " 38,988 7f

S'd " 2,824 112,960 " 60,834 10

4th " 3,480 139,200 " 62,640 12^

5th " 4,136 205,440 " 74,448 15

The expenses attending the operating of railways must neces-
sarily vary according to the description of business, and the more
or less favorable gradients of the line. In the case of the Hamilton
and Port Dover Railway, the great bulk of the freight will be moved
over the down grade towards Lake Ontario. On the New York
and Erie line 77 per cent of the freight goes East, against 23 going
West. It may therefore be assumed that the Hamilton and Port
Dover line will be an economical one to operate, and that the
working expenses and wear and tear of machinery and permanent
way together, will at no time exceed 55 per cent of the
gross receipts. The arguments which have been adduced, and
which the Directors trust have been presented in a perfectly intel-
ligible form, must afford convincing evidence that it will prove not
only profitable as an investment, but of incalculable value to the
interests of this City and all the localities interested.

The Directors closed their report last year with an allusion

to the effects produced upon the value of Real Estate in this City,

by the opening of the Great Western Railway. It will no doubt

be highly gratifying to the friends of our Railway interests to learn

that, the increase in the assessed value of property for the last

year has been fairly maintained, although the recent assessment

has been made during a period of unusual monetary pressure.

TABLE.
Shewing the assessed annual value of property in the City of
Hamilton, before the commencement and since tie opening of the
Great Western Railway, and shewing also the reilftive increase.

1849. (Before Great Western Railway was commenced,) £ 60,726

1860. do do 61,614:

Increase in one year. 860

1864. (Year of the opening,) 16*7,000

1865. (After Great Western was opened one year,) 190,000

Increase in one year. 8*7,000

1866. (Assessment just taken,) 220,000

Increase over 1866 £ 30,000

' i

It will bo seen by the above that the ratio of increase in the
assessed annual value of the City from 1849 to 1860 was about
one per cent, whilst from 1864 to 1856 it was 22, from 1856 to
1856 the increase has been 16, and from 1840 to 1860 no less than
360 per cent. As the annual value is computed at the rate of
c/ 6 per cent fi\ the gross assessed value, it will be seen that^
^/ the increase of last year /h the annual value of real estate in
Hamilton, (being £30,000,) represents an increase on the actual
value, of £600,000, a sum estimated to bo sufficient to build
and equip the whole of the Hamilton and Port Dover Rail-
way. The £220,000 (assessment for this year,) represents
about £3,606,000 as the gross assessed value for the whole City,
^^ which is, probably, more than a million of pounds below its ac-
)( ^Iti^ tual intrinsic value. It will, t hy^w , be seen that the City pos-
sesses ample ability to aid this enterprise to the extent necessary
to insure its completion. The Directors, therefore, appeal to the
public spirit and enterprise of all parties interested, and especial-
ly to the citizens of Hamilton, who will be most of all benefited,
to aid them in carrying forward the work. They must reflect
upon what the effect of delay will bo. Let the Southern Kailway
be built and the Buffalo and Lake Huron Line finished, and set
a-going, and the trade of the finest part of Canada will set in, in
another direction, from which it will be no easy matter hereafter
to divert it into our market. We shall, then, be cut off, and become
isolated from the most promising elements of future greatness. —
The Directors conceive that it is no longer a matter of choice, but
one of urgent necessity, to complete this work without further de-
lay. Hamilton will then take the lead of all other Cities in point of
Commerce in Upper Canada, and the consequent rise in the value of
I property may confidently be estimated at four or five times the cost

of the Line.

ALLAN N. MACNAB, President.

HUGH C. BAKER, Vice-President.

G. W. BURTON,

R. P. STREET,
M. W. BROWN^
J. T. GILKISON,
JAMES LITTLE,

w. p McLaren,

JOHN BROWN,

Directors.

crease in the

was about
om 185fi to
' no less than

the rate of
e seen that
lal estate in

1 the actual
nt to build
)ovcr Rail-

represents
whole City,
elow its ac-
le City pos-
it necessary
)peal to the
id especial-

I benefited,
nust reflect
rn Kail way
ed, and set

II set in, in
[• hereafter
ind become
reatness. —
shoice, but
further de-
in point of
ie value of
es the cost