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Les diagrammes suivants illustrent la mdthode. 1 2 3 32X 1 2 3 4 5 6 llC-z. • / ..; THE fiJatia^te ^0ttthet:tt Eaitaj COMPANY, - . The limited number of Pamphlets which were orio-inally printed having been exhausted, in this new issue some few changes and addi- tions have been made to conform to the present status of the undertaking, and the actual distances on the final location of this and of connecting Hnes .westward. ^Ew York, September bth, 1811. ' J \ ^ ., 4#. 3 ^Hw*l 41W? wtt*f Luiijww •■lyur' vy. v-Mrmvfr » >. i w i > m ,n"' ■! '««j|»»i.i^;.w(ui h uw^i . ^ rn T H K IliMda fctttknt ftrnkag CX3MPANY. PROSPECTUS, REPORTS AND OTHER DOCUMENTS. Itchy |)orli : E WELLS SACKETT, BOOK, JOB AND LAW PRINTER, Cor. Wiij.iam and Pink Stiskkts. 1871. Officer^s of the Company. MILTOI^ COURTRIGHT. JOHN F. TRACY, DANIEL DREW, SIDNEY DILLON, WM. L. SCOTT, WM. A. THOMSON, JOHN ROSS, 0. S. CHAPMAN, BENJ. F. HAM, MILTON COURTRIGHT, NICOL KINGSMILL. M. H. TAYLOR. F. N. FINNEY. WM. J. McALPINE. CROOKS, KINGSMILL & CATTANACH, Toronto, Canada. CHARLES TRACY, * New York City. 121128 ; I PROSPECTUS OF THE CANADA SOUTHERN RAILWAY COMPANY. The object of the promoters of the Caxada Southern Railway is to form with other Roads a cheap line of traffic between Chicago and New York, so located and constructed as to I reduce the cost of transportino- the products of the Interior to the lowest limit. The line adopted by this Company with its connections will accomplish this result, being practically level and straight to tide water. The natural outlets from Chicago and the Valley of the Mississippi to the seaboard, are either in a Southerly direction along the Valley of the Mississippi to the Gnlf, or in an easterly direc- tion to Lake Erie ; thence along its borders to its eastern terminus at Buffalo, and from there following the plateau that extends to the Mo- hawk, thence to tide water on the Hudson, or by a line through Canada to Hamilton, at the M r, head of Lake Ontario, and thence by the Lake and the St. Lawrence to tide water. All rail- ways from Chicago to the seaboard, between this platean and the Mississippi, pass over for- midable mountain ranges. The Erie over the Alleghanies at an elevation of 1,800 feet; the Pennsylvania at an elevation of 2,200 feet ; the Baltimore and Ohio at an elevation of 2,(>0() feet, and the Chesapeake and Ohio at an eleva- tion of 2,000 feet. Upon this route this great mountain range falls oif at the sumnut of the plateau mentioned into a plain only 420 feet above tide water, and 145 feet below the level of Lake Erie. ROUTE. The Canada Southern Railway is located through the southern tier of counties in the Province of Ontario, the most populous and fertile agricultural portion of the Dominion of Canada. s Its eastern terminus is at the International ^ * Bridge, noAv being constructed over the Niagara River at Buffalo, and its western termini are on the Detroit River at Amherstburg, near its mouth, 229 miles from the International Bridge, and (by the branch) at Moore, on th^^. St. Clair V River, (opposite St. Clair in Michigan,) 184 miles from the Bridge. B Ijake 11 rail- etwccii ^er t'or- 7Gr the et; the ct ; the [ 2,()0() 1 eleva- is ^'reat , of the 20 feet [le level located ill the us and inion of ational Niagara are on lear its Bridge, ^t. Clair H miles CONNECTIONS. Its eastern connections with the seahoard, will be by the existing New York Central and Erie Railways; the Midland Railway, and the Buffalo and Washington, and Pine Creek Rail- ways, now in the course of construction, which two last-mentioned, in connection with the Pennsylvania road, will furnish two additional lines to New^ York, and one to Philadelphia, Baltimore and Washington. Its western connections with Chicago, will be by the Chicago and Canada Southern Rail- way, from opposite Amherstburg, as well as by the Peninsula and Midland, and the Michigan Air-Line Railwavs from St. Clair, all of which lines are now under construction. The Railways mentioned will make four dis- tinct lines from the eastern terminus of the Canada Southern to New York, and, with the Michigan Southern and Central, five distinct lines from its western termini to Chicago. The Canada Southern will thus be a connecting link between great systems of roads, w^hich can now supply to it, at either end, a traffic equal to its utmost capacity. To connect these important systems there are now but two existing roads, viz. : the Lake Shore along the south shore of Lake Erie, and the Great Western of Canada, with its proposed " Loop Line " from Glencoe to Canfield. It is also the most direct link in the line of coinnmnication between the West and the New Enghmd States, and their prin- cipal seaports. The main line and its branch are located where the Detroit and St. Clair Rivers may be crossed to the best advantage, either by ferries cr by bridging. Ferry-boats may be tempora- rily used, but public convenience will demand, as it has over the Mississippi, that bridges over them shall be built as soon as possible, with such provision as will prevent interference with navigation. ALIGNMENT AND GRADES. Annexed is the report of Mr. F. N. Finney, chief engineer, in which Avill be found in detail the lengths of the maia line aiul the St. Glair branch, the proportion of the straight and curved lines, as well as of the grades and dis- tances between objective points, as compared with other lines. Also, the report of the Hon. Wm. J. Mc Alpine, consulting engineer, who by his scientific knowledge and long practical ex- perience in the construction and management of some of our most important railways, and in his official connection with the railways and canals of the State of New York, has had a very extended and diversified knowledge of the trade and commerce of the coTintrv, and also of the cost of transport as affected by the diff'erence jL i West ' prin- ocated lay be ferries npora- smaiid, is over ;h such with ^ limey, detail Ohiir and id dis- ipared e Hon. v^ho by cal ex- lent of in his canals very B trade of the erence of grades, alignment, etc., upon railways, and who has made and published many comprehen- sive reports upon these subjects. He has carefully examined the report of our chief engineer Mr. Finney, and presents the ad- vantages which this line possesses in regard to its position, grades and alignment. The length of road to be constructed is 291 miles, of which 96 per cent, is straight, with no opposing grade exceeding 15 feet per mile, and that for only a short distance in any one place. • The distance from the common railway center at Buffalo, by tlie main line, is 23 miles less to Toledo than by the Lake Shore, and to Adrian by the Chicago and Canada Southern Railway, it is 48 miles less than by the Lake Shore, The distance by the main line and the Chi- cago and Canada Southern Railways to Chicago, is 33 miles less than by the proposed "Loop Line " of the Great Western and the Michigan Central ; 45 miles less than by the Lake Shore and Michigan Southern "Air-Line," and 55 miles less than by the " Old Line " of the Mich- igan Southern. The Chicago and Canada Southern Railway is the closing link between the western terminus of the main line of the Canada Southern Railway and Chicago. The maximum grade of the former, like that of the latter, is but fifteen feet to the mile, with an alignment neai'ly as favorable as that of the Canada Southern. I I ! ■ 10 None of the existino- lines of railway between Chicago and New York, have been located and constructed with reference to cheap transi)orta- tion. The great and increasing traffic between these points, now demands a hne of railway which will afford the cheapest transportation practicable. With a few changes in the existing hnes of railway between Buffalo and New York, grades of not exceeding fifteen feet per mile and good alignment, can be obtained, which will make, in connection with the Canada Southern, and the Chicago and Canada Sonthern Railwayj^, a line over almost a level plain, the entire dis- tance from Chicago to New York. No better evidence of the value of low grades can be given than that which is exem- plified by the experienced managers of the Pennsylvania Railway Company, who are now en- gaged in providing a low grade line for freight, between Pittsburgh and 1 Larrisburgh, by which they will abandon 250 miles of their present main line for through freight traffic, although it will increase the length of the line to be run, 02 miles, and involve the actual construction of 110 miles of a new and expensive road. Another instance is that of the Hoosic Tunnel, where twelve millions of dollars will be ex- pended, mainly to reduce the grades between the Hudson and Connecticut Rivers, the distance to Boston being reduced only 10 miles. Similar changes in several of the Great Trunk Lines are 11 )etwccii ted and is])orta- >etween railway )rtation Bxistiiig ;v York, ►er mile lich will )iithern, ailwayf^, tire dis- of low s exem- of the now en- freig'ht, y which present though be run, ction of Tunnel, be ex- 3etween distance Similar ines are in contempL'ition, all of which show that the i attention of the most judicious minds of raihvay I managers is earnestly directed to lessening the I cost of transportation by reducing grades. ' None of the railways between Chicago and ; New York, south of the Lakes, have a uni- form gauge. A gauge of four feet nine to four feet nine and a quarter inches, intervenes in all of them. The Canada Southern, with its con- nections east and west, will form a through line, relieved of this objectionable feature, having a uniform gauge of four feet eight and a half inches, (the prevailing gauge of the country,) over its entire length. Another important object to the northern roads connected with this line, will be effected by the construction of the Canada Southern. Heretofore the northern lines, when in close com- petition for traffic, or in a contest for speed, have been closely pressed by the more southerly lines ; this railway will change the position of these lines in that respect, in favor of the north- ^ern lines. The advantage which the Canada Southern j possesses in the matter of routes and grades, land its importance to other lines cannot be jbetter illustrated than by the discussions of ithe shareholders of the Great Western Kail- iway Company, at a meeting held in London, I England, in July last, called to consider the |building of the '^Loop Line" from Glencoe to 12 Canfield, extracts of wliich Avill be tbuiid lioreto ap])eiided. Tliese gentlemen who expected to forestall tlie construction of the Canjvda Southern by building the " Loop/^ doubtless took an intelli- gent and comprehensive view of their position, as it was evident from tlie drift of their re- marks, that the constructicm of the " Looj)," was not deemed advisable for their interest as a project by itself^ and was only urged to defeat the Canada Southern. The value and importance of the Canada Southern Line itself, and its necessity to the other great lines in which we were interested, alone controlled the question of its construc- tion. If the Creat Western Railway Company were warranted, even in entertaining the idea of a ^'Loop Line," parallel with their .own railway, in consideration of procuring gi'ades of thirty- five feet i)er mile, but by which they would gain nothing substantially in distance, while the business which it would get would be ju'ln- cipally taken from their own main line, these other great interests, both east and west, would certainly be warranted in building the Canada Southern, by which they would save from forty- five to fifty-five miles in distance, and procure grades of 15 feet, which are as much better than those of the '' Loop," as the latter are superior to those of their own main line, while ^we w 1,. I hue \A •Trun uatio our 11 I Chi ; raihv |tho»e I Of I one g l])owe •This 1 Westc I To !the P alone, interei The jrailws [very i [state 1 ^crease S500,( " crea " the : ^' and cent, i 10 13 . |we will lose nothing by diversion, and have a line which is seven miles shorter than the (irand X ji Trunk and "Loop" Lines between the Jnter- 1 national Bridge and their final divergence from ntelli- ^^^^* ^^'^^ '^^''^^ ^** Thomas. ^ition \ ^^^^^''^^^ i^ ^^o* <^iily ^ centering point for the ir re- ^I'^^l^V'iy lines from the eastward, but also of ..r... " those extending to the westward. est as 9 Of the railways diverging Avest from Chicago, ^efeat 1^^*^ great interest is under the same controlling ^])ower that manages the Michigan CY^ntral. in'ida '^^^^^ management is now extended to the Great the AVestern of Canada. ested T^ have left the monopoly of the traffic across the Peninsula of Ontario under that control alone, must have been regretted by every other interest both in and out of Canada. struc- were I of a Iway, lirt V- TRAFFIC. vould while .The managers of the Great Western, whose nrin- '"li^way passes through a country occupied hose ^ ^'^T i^^iich like that of the Canada Southern, ^j^lj state that from 1865 to 18()9, there was an in- nada '^i'^^^^ iii the value of their through traffic, from .^j.^ '_ $500,000 to Jii^l,200,000; '^a steady, regular in- :)cure crease which is going on still, notwithstanding letter ' *^^^ reduction of rates and fares between 1805 ^j.^ " and 1869," of one hundred and thirty -six per hile ^^^^' i'^ fiv® years ; or, an average of twenty- •£• 14 seven per cent, per annum. The gross traffic receipts for the half year ending 31st July, 1870, were $2,044,500, of which the local traffic was 45 per cent, of the whole. Taking the first half of 1870 as a basis, the receipts for that year would be $4,000,000, of which, by the same proportion, $1,800,000 would be derived from the local, and $2,200,000 from the through business. Inere being a ''steady regular increase" be- tween 1805 and 18G9 of 27 per cent, pei annum, it is a low estimate to assume, that by the time the Canada Southern Railway is completed, (January 1st, 1873,) the business of the Great Western will have increased at least 25 per cent., (12^ per cent, per annum,) equal to an ag- gregate amount of local traffic of $2,250,000, I and of through traffic of $2,750,000. I On the opening of the Canada Southern, with I its further development of the large agricultural products for export, as well as those from the lumber and mineral oil districts, which have heretofore been destitute of railway and other facilities of transport, an additional local busi- ness may reasonably be expected of at least 25 per ^ent., making for both roads $2,800,000 of which the Canada Southern, when fairly in ope- ration, will, it is estimated, secure at least two fifths, or $1,120,000, with an increasing pro- portion every year thereafter in its favor. It may be added that a large traffic will be 15 38 traffic Lst July, f !al traffic lasis, the [ 0,000, of I ,800,000 I ,200,000 iase" be- aiinuin, J the time | mpleted, * le Great j 25 per i io an ag- ^^ 250,000, f I rii, with cultural K ^om the I h have ; d other al busi- least 25 J D,000 of 1 ^ in ope- '■] iisi two J ng pro- )r. will be derived from the existing branch railways, from London, from St. Catharines, from the two roads which extend from the International Bridge, through Niagara Falls, and from the Hamilton branch now constructing, all of which, except the London branch, terminate on Lake Ontario, where they connect with the steamers running to Toronto and through the Lake and the St. Lawrence to Quebec, and to all ot the impor- tant intermediate places. The Hamilton branch will give us a direct communication by rail with 'T'oronto, and all other points north and east of Hamilton to which railways have or may be extended. By this branch from Hamilton to Caledonia, thence by the Grand Trunk to its intersection with the Canada Southern, and by the latter to the Li- ternational Bridge, Buffalo and the railways terminating there can be reached in about the same distance ttom Hamilton as by the Great Western, thereby giving Hamilton and the country tributary thereto a competing line to and from the East as well as the West, includ- ing the Oil Regions. The Hamilton branch is 27 miles in length from Hamilton to its inter- section with the Canada Southern Railway 581 miles west of the International Bridge, which latter point is 423 miles from Chicago, bringing Chicago within 450 miles of Hamilton, which is at the head of navigation on Lake Ontario. 16 The nearest point from Chicago at which Lake Ontario can be reached by rail along the south shore of Lake Erie, is over 560 miles. A large through traffic over the Oanachi South- ern, will be derived from the central and north- ern portions of Michigan, tributary to the St. Clair branch. The rich and thickly populated agricultural regions of central Michigan, to- gether with the vast quantity of pine from the northern i)ortion of the State, (already pene- trated by railways,) can find no outlet to an eastern market so advantageous as over the St. Clair branch. In addition to this, the St. Clair branch will obtain from the Peninsula and Midland, and the Michigan Air-Line Railways, not only the through business which those lines will derive from Chicago, but also their own local business, and very much of that which will be carried by the other lines, which they will intercept, and to which this branch can ofi*er a shorter and cheaper line eastward, than can be ob- tained by any other. From these sources, it is believed there will be derived an amount at least equal to that above estimated for the local traffic in Canada, or $1,120,000. The following extract, taken from the Report ot the Convention, held at Saginaw, in 18()9, of the friends of a line to connect with the North- ern Pacific Railroad, from the St. Clair River St. la, 17 via the Straits of Mackinaw, will show the value of the products of the northern portion of Michigan which will he tributary to the Canada Southern Railway : Copper and Iron from Lake Su- , 1^^™^^ • • . . . $6,900,000 Lumber, Timber, Shingles, Lath, Staves, etc., . . . ,' 28,534,294 r,r*^ 1,111,380 i^^\ 651,000 ^^^®*^^*' 144,090 Total, $39,340,704 The Northern Pacific will be extended east- wardly either by that or some other Company through the great mineral and lumber regions along the south shore of Lake Superior, to the Straits of Mackinaw, where it will connect with railways extending to St. Clair. The distance by the Canada Southern and the Straits, from Buffalo to Duluth will be over 100 miles less than via the south shore of Lake Erie and Chicago. From all intermediate points east of Duluth the distance saved will be much greater. This is an important feature in con- nection with the Canada Southern Railway, and must ultimately add largely to its traffic. From the main line via Amherstburg our connection with Chicago will be by the Chicago ■I 18 and Canada Southern Railway, with wliich we are in close alliance, forniino- tooether the most direct and level railway attainable between Chicago and Buif'alo. From the local business of this important line, the through traffic from Chicago, and from lines west of Chicago, an amount equal to that now derived by the Great Western from the Michigan Central, (increased by the twenty-five per cent, before stated,) viz., $2,750,000, may certainly be relied upon, as soon as the facilities for transportation are afforded. This amount, together with the estimated local business of Canada, $1,120,000, and the through trafl&c from Central and Northern Michigan, $1,120,000, gives an aggregatt: of $5,000,000. In the foregoing estimate the business that centers at the Cities of Detroit and Toledo, from both of which points the Canada Southern will furnish the shortest and much the best route east, has not been taken into the account. The best idea of the through business which the Canada Southern Railway may expect can be derived from a statement of the immense area, population, wealth, resources and progress of the States lying west of its western termini. These States are Michigan, Indiana, Illinois, Missouri, Kansas, Nebraska, Iowa, Wisconsin and Minnesota. They contain an area of 5()0,793 square miles, and had a population in 1870, of 10,280,371. The following statement will show 19 the area of each State, the population, and the number of miles of railway in each, in 1H()0 and 1870. Ar(>n, Population, Populiitlnn, MlIcH of Miles of H mi'l Alton. 380,197 511,012 (i.-^O.SOO 915,082 1,076,678 CliiciiffO, Uo->. Mr. E. 11. Walker, Statistician for the New York Produce Exchange, has kindly furnished the annexed interesting official statement, show- ing the average annual cost of transportation of wheat and corn by water, from Chicago to NewYork, including handling and other charges, for the past fourteen years. This has been in round numbers, 28 cents per bushel for wheat, both by Oswego and Buffalo, and foj" the year 1870, was 22 cents per bushel. Corn being car- ried at about the same rate for the same weight. The toll on the Erie Canal for the last year was 3 cents per bushel Avith freight exeeption- ably low. If the Erie Canal is ever made free from toll, it will only reduce the cost of trans- portation by water to this extent. This is the only reduction possible, short of an enlargement of the canal. Mr. Mc Alpine demonstrates that by a low grade line, grain can be carried from Chicago to New York for from 20 to 22 cents per bushel of 6( ) pounds, taking as a basis, the roads with iron rails, and with a road-bed as ordinarilv used. With a perfect road-bed and steel rails, a saving of 15 per cent, as compared with his estimate, may be assumed. The practice of purchasing grain at the sta- tions upon the roads west of Chicago, is in- creasing among grain dealers. This saves all charges at Chicago and Buffiilo. These transfers oo Ao and other charges cannot be avoided if brought by water. Another consideration of no small importance, is the shorter time of transit and the better con- dition in which the grain reaches market. A freight train of 40 cars, with 14,000 bushels of wheat, which can always be relied upon, from Chicago to New York, (1)25 miles,) over a railway with a good road-bed, steel rails, and with grades not exceeding 15 feet per mile, and a return with one-fourth (100 tons) the weight, (which is about the proportion of back freight,) can be taken at a cost of not to exceed $1.00 per mile run, or for 1,850 miles, $1,850 Terminal, and other charges, . . . 4(38 $Z,cil8 Total, . . . This includes the cost of working and maintaining the railway and equii)ment, together with every other expense, except interest on capital. 14,000 bushels of wheat at 17 cts. per bushel, is . . . $2,380 100 tons mixed freigJit back, at 75 cents per hun- dred, is 1,500 3,880 Leaving a net profit of $1,502 or over 40 per cent, upon the gross earnings. 24 A »}2-ton locomotive will transport over such a road OO cars, with 21,000 bushels of wheat, with a return freight of one-quarter the above (say 150 tons), at a cost of $1.25 per mile run; this would reduce the cost of transporting the wheat to 14 cents per bushel, and the back freight to 00 cents per hundred. The traffic of existing railroads has been constantly gaining over water routes, between Chicago and New York. The reduction in cost that can be made on this line will not only add to its tonnage from ordinary sources, but enable it to draw to an unlimited extent upon that which has heretofore gone by water. Over such a railway as has been described, and which is entirely practicable, produce from Chicago and stations west, can certainly be transported cheaper to New York than by any existing water communication, and it is be- lieved, cheaper than by any improved, or en- larged navigation practicable. In connection with the transportation of grain through the St. Lawrence, which is now of considerable magnitude and rapidly increas- ing, the line to Hamilton becomes particularly important. The distance from Chicago to Lake Ontario, by water, is not only long and circuit- ous, but involves passing through the Welland Canal, the locks of which are only 26^ by 150 feet in the chamber. The locks between Lake Ontario and Montreal are 45 by 200 feet, the n1 5] til 2( Rl c'i n e: avi 25 any be- en- lattei' admittinpj vessels or barges of very much greater capacity — sea-going ships. Of 54,000,000 bushels of grain destined through the Welland Canal, 10,000,000 bushels, or nearly 20 per cent, were lightered over the Welland Railway, which was built by the side of the canal for that purpose. Taking grain by all rail direct to Hamilton, this lightering and expense of passing the Welland Canal will be avoided, and can there either be put into a class of ships safe for a sea voyage, or into large barges, for either Oswego, Montreal or Quebec, at which two latter places it can be sent abroad by a still larger class of ships. Grain can be taken from Chicago to the head of Lake Ontario at Hamilton, 450 miles, and transferred into vessels or barges through an elevator for 8 cents per bushel. Airing grain occasionally, through an elevator, on a long voyage, is worth to the grain all it costs. The transpor- tation of grain by this route will doubtless become important, and add largely to the traffic of our railway. The receipts of the Lake Shore and Michigan Southern Railway in 1870, were over $13,000,- 000. From the 1st of January to the 1st Sep- tember of this year (4871), the increased re- ceipts, as compared with those of the same time last year, were over $900,000, and but for the want of capacity to do the business offered, would have been greater. If more facilities "f|WW,' T^i.-^J^'V '«■* '■ 26 arc necessary /lo?/^ to relieve this blockade, it will be imperatively necessary, upon the com- pletion of the additional railways, now in course of construction from the Detroit and St. Clair Rivers west, and from Buffalo east. The Canada Southern will have less than half the capital of tlie Great Western with its ''Loop," and but half the capital, which belongs to that portion of the Lake Shore Railway, which is within a correspondino; distance from Chicago. With the advantages of distance, grades and alignment largely in its favor, it will start off with a steel rail .and new equipment of the most approved modern kind, whilst the Lake Shore and Great Western Railways, to avail of similar track and equipment, must add as much to their capital, as will nearly double track the Canada Southern. The low grades and perfect alignment of tKe Canada Southern Railway will admit transpor- tation of passengers at the highest speed, aiul under the conditions of the most perfect safety. It will have the same economical advantages in the transportation of passengers as it will have in that of freight. With its ability for cheap transportation, and all its other advantages combined, it is difficult to estimate the traffic which must necessarily pass over the Canada Southern Railway, the most favorable link in that line of transit, over which so important a portion of tlie business of the continent naturally passes. jckade, it the com- I in course I St. Clair than half 3S "Loop/' gs to that which is I Chicago, rades and 1 start off ' the most ike Shore of similar h to their le Canada int of tKe transpor- peed, and ct safety. Ivantages as it will ition, and s difficult ecessarily wa}', the nsit, over usiness of 27 ASSP]TS. Capital stock, .f; 10,000,000 Capital stock subscribed, . . . 2,000,000 First mortgage, 7 per cent, sinking fund bonds 1),000,000 The cost of the Railway equipment and appurtenances complete, as estimated by the Chief Engineer, is 14,500,000 To this must be added for commis- sions, office and legal expenses, and contingencies, 1,500,000 Total . $16,000,000 Based on the payment of one-half in the capital stock of the Company ($8,000,000) and the remainder in first mortgage bonds of the Company ($8,000;000). This will leave two milHons of the stock and one million of the bonds in the hands of the Company. Sufficient of the securities (equal amounts of stock and bonds) have already been placed, to provide all the means necessary to procure the right of way, fence, grade, bridge, and prepare the road-bed upon the whole line of railway, including the Branch, for the super- structure, and to furnish the rails for, and complete fifty miles of the same. _<^-,V';;' _;vy^-'T_ ' v(V'» '.f^s^i — rf!*r-^.-\r^^ 28 The estimated annual gross re- ceipts from traffic, as heretofore stated, are ^5,000,000 The working expenses should not exceed 55 per cent, of the gross earnings, even at the minimum ^^*^s, or 2,750,000 Leaving of net revenue, . . |2,250,000 The annual interest on the bonds is |()30,()00, and the contributions to the Sinking fund $82,000; this provides for the payment of the interest and debt at maturity, ^^king 712,000 Leaving, net, $1,538,000 which is equal to 19 per cent, on $8,000,000 of stock. The hne is permanently located, right of way nearly all secured and paid for, all the grading and bridging, and most of the ties required are under contract and under way. The grading and bridging will be completed, and the road- bed of the whole line, including the Branch, made ready for the superstructure by the open- ing of next Spring. Rails for 05 miles (six thousand ^ve hundred tons) have been pur- chased to be delivered this fall. "-TTf ■■ '!■■ ■WT r«r" 7" •"ST"-'*;" 29 It is the design of the Company to have the whole line of Railway completed, equipped, and ready for operation, by the 1st of January, A copy of the Bond and Mortgage is hereto appended. For the Board, M. COURTRIGHT, President. New York, September, 1871. , *- '/ ■ T^r'f -»— ••f-.i— --r.',',--|*T ^••jm,mmfM._. «^ ^i"*"Mi 'f T A u til R R oil (01 is M. tic Sti Cu Th Lei REPORT OF CHIEF ENGINEER. To THE ]*]IKSII)ENT AKJ) DlUECTOKS OF THE CaNAUA Southern Railway Company : Gentlemen: Your road is now perinanontly located. A line has been obtained with grades not exceeding 15 feet to the mile, and 3 degree curves, being within the limits of my instructions. The distance from the west end of the International Bridge, (over the Niagara River at Butfalo,) to Amherstbnrg, (on the Detroit River, and near its mouth,) is 1^28.83 miles. The St. Clair Branch, from the point of its diverg- ence from the main line, (near St. Thomas,) to Moore, (on the St. Clair River, opposite St. Clair, Mii-higan,) is 61.89 miles ; and from the International Bridge to Moore, the distance is 184.2!) miles. The alignment of the main line, from the Interna- tional Bridge to Amherstbnrg, is as follows : Straight line 218.7G miles. <^"^^^s3° 0.95 miles U QO ^ 2.00 " " 1° 4.72 " i - 2.40 " 10.07 « Making the total length of the main line.... 228.83 miles. The alignment of the St. Clair Branch is as follows : Length of straight line 60.98 miles " " curves 2° o.91 " 61.89 '' ' Making the total length of the main line and hraneh oon to -i - 5i90.72 miles. 32 The total ien^'th of straight line, (on the main lino and branch,) is 279.74 miles. The total length of curvature 10.98 " 290.72 miles. ^The |)riiicii)al tangents on the main line are, one of 17.;}4, one of 28, one of 51.18, and one of 52.15 miles, and on the St. Clair branch one of 54.48 miles. The length of the different gradients on the main line are as follows : Level and under 5 feet per mile 121.20 miles. Going East, ascending 5 to 10 feet per mile 14.35 " " " 10 to 15 « " " .... 19.80 " " " of 15 » '' " .... 14.83 Going West, ascending 5 to 10 " " " 21.77 " 10 to 15 " " " 6.67 " of 15 " " " 30.21 (( (( « 228.83 miles. And on the St. Clair Branch : Level, and under 5 feet per mile Going East, ascending 5 to 10 feet per mile. " " " 10 to 15 " " « " " " of 15 " " " Going West,ascending 10 to 15 " " " " of 15 (( (( (( -.42.09 miles. -- 5.25 " .. 3.31 » -- 4.47 " .- 0.85 " -. 5.92 " 61.89 milei?. Of the 15 feet grades, there arc 14.83 miles encoun- tered on the main line going east, and 30.21 miley going west ; the greatest length of which, however, in any one place, going east, i.^ 2.55 miles, and going west is 3.48 miles. 33 A line was run from a point near Sandwich, on the Detroit River, (opposite Detroit, Michigan,) for a dis- tance of 15.2 miles, to the main line. It is nearly level and can be cheaply built. But as Detroit can be reached via the St. (Uair Branch, with less distance and equally lavorable grades, and to better advantage than by the way of Sandwich, it will i)robably be deemed inexpedient to build the road to Sandwich, at least for the present. The distance from the terminus, of the St. Clair Branch, at Moore, across the river to St. Clair, is 2,011 feet, or 0.38 miles, with a dei)th of water from 20 to ;{3 feet, with the excei)tion of the main channel, which is 500 or GOO feet in width, with a dei)th of water averaging 43 feet, and a maximum of 45 feet, with a hard blue clay on the bottom, tor the whole width of the river. This crossing is favorable, not only for a l)ermanent bridge, but also for a temi)orary ferry, and is unobstructed by ice during the winter. The distance from the terminus of the main line at Amherstburg, across the river to the main shore on the American side, is 3.48 miles. The eastern or main channel of the river, is about 3,500 feet in width, vary- ing from 10 to 22 feet in depth, with an extreme depth of 22 feet, and a rock bottom throughout. There are two other comparatively unimportant channels to bridge, on the Michigan side of the river, together nearly 3,000 feet in width, where the average depth does not exceed 15 feet. These two latter channels, and also a part of the main channel, can readily be bridged, leaving a ferry of only 3,000 feet. This crossing is also favorable lor a ferr}^, being unob- structed bv ice during the winter. 34 The crossings, both at Ainh(M'st))urg and St. Clair, are iavorable for britlgiii;:', and would be entirely nn- objectionable on the ground of iutei'lering with the navigation, if provided with suitable draws. The distances between the objective points are as foUows : Ist. Between Buifalo and Toledo, via the main line to tlic Detroit Branch of the Lake Shore and Michigan Southern Railway, to wit : The International Bridge over the Niagara River 0.67 miles. From the International Bridge to Amlicrst- burg. 228.83 " From Amherstburg to the main shore on the American side 3.48 " Thence to Toledo 38.02 " Total distance from Buffalo to Toledo 271.00 miles. In estimating the distance from the point where our line would intersect the Detroit Branch of the L. S. and M. S. Railway to Toledo, I do not calculate the distance to the depot in Toledo, but to a point where the roads leading into Toledo would naturally inter- sect, and which would add nothing to their length. 2d. From Buffalo via tlie St. Chiir Branch to Detroit : Buffalo to St. Clair St. Clair to Detroit via New Baitunore .184.29 miles. .. 42.00 " 22G.29 miles. 35 Tn calciihiling Iho (lislniicc IVom St. Clair (o Detroil, it is not tukcn to tlic liviM-, but to tho point of inter- section with the Detroit and Milwaukee K. li. and tlie Detroit Bran<;h of the Lake Shore and Michigan South- ern Railway, and which is convenient for the business of Detroit, and at the same time avoids the long cir- cuit into and out of the city and saves a number of miles of distance in passing on to Chicago, by any of the roads leading to the hitter. The maximum grades on the proposed " Loop Line" are ;55 feet to the mile, and with greater curvature than on tlie Canada Southern Railway. Tn justice to the Chief Engineer of the G. W. Loop Line and his associates, it is jH-oper to say, that these grades and this (curvature were nuavoidablc ; as b}^ the act of J\arl lament, granting the right to build the road, they were obliged to locate it through the differ- ent villages along the route. The maximum grades on the Grand Trunk Railway, between the International Bridge and Canlield, over which it is proposed to pass the traflic of the " Loop Line," are at least as great as those of the " Loop." The distances from Buffalo to Chicago, (the principal objective point,) starting from the natural point of in- tersection with the New York Central, the Erie and other railways at Buffalo, (viz. : 3? miles east of the Buffalo depot, and 5 miles from the west end of the International Bridge,) are as follows : 36 1st. By the Canada Southcia main line, and the proposed Chit^ago and Canada Sonthern m,l«h. KfiJlways, is 487 2d. By the Canada Southern and the Chicago and Canada Soutliern Railways to near Adrian and the Michigan Southern, . . 491 I ^^ 3d. By the St. Clair branch of the Canada South- ern, and the Michigan Air-Line Railways, 497 4th. By the St. Clair branch of the Canada South- ern, the ^lichigan :Midland, and the Penin- sula Railways, . , 505 5th. B}' the Grand Trunk, the Great Western l audits "Loop Line" nnd the Michigan Central Railways, 520 Gth. By the existing line of the Great Western and the Michigan Central Railways, start- ing at an e(pial distance with the other lines from Rochester, 520 7th. By tlie Lake Shore and Michigan Southern Railways, via the Goshen branch, . . 532 8th. By the Lake Shore and ;^^ichigan Southern, via the old line, 542 The distance from the intersection at Bufitilo, by the Lake Shore Railway, to Toledo, is . 299 By the Canada Southern and the Detroit branch of the Lake Shore to Toledo, is, ... . 276 S;'. Clair, in Michigan, is the same distance from Bnffalo, by the Canada Southern as Cleveland is by the Lake Shore ; and Lansing, (the capital of the State of Michigan,) is the same distance from Buffalo as Toledo. In addition to the low grades which have been es- tablished upon the Canada Southern Railway, and 37 MlLQH. 487 494 497 505 520 520 299 276 the slight curvature, other essential advantages have been gained, which add to the safety and value of the road, viz. : First. — There are no curves on the road, which do not have tangents of at least 1,000 feet between them, thereby allowing trains of the usual length to straighten, before entering upon another curve. Second. — Every bridge upon the road, is approached by a tangent of not less than 1,000 feet in length, and in nearly all cases of much greater length. This is a very essential feature, as it lessens the strain on the structures, and reduces the liability of engines, or cars to leave the track, on or near the bridges. lliird. — The maximum grades are confined to the tangents. Curvature and grades seldom occur at the same place, and never where the resistance of the two combined, exceeds the effect of a grade of 15 feet per mile on a straight line. Fourth. — The aggregate length of permanent bridges will not ultimately exceed 1,300 feet, or one-fourth of a mile, for the entire length of the main line and branch. The working divisions of your road are determined by the location, and are very favorable for working it economically ; that is, St. Thomas being central on the main line and also at the eastern terminus of the St. Clair branch, by locating the main shops for con- struction and repairs at St. Thomas, every locomotive making regular trips over the road, either on the 38 Eastern, Western, or rft. Clair Divisions, will neces- sarily come to these shops every twenty-four hours, and all cars passing over the main line or branch, will also be here examined and repaired if required. Locomotives would easily make the trip over the Eastern and Western divisions daily, and a round trip each day on the St. Clair division, thereby economiz- ing power to the greatest degree. Small shops in connection with the reipiired engiixC houses at each end of the main line, and at Moore, would be the only shops in addition to the main one at St. Thomas, that would be required. My estimate of the entire cost of the road, with a suitable allowance for contingencies and superintend- ence, (heretofore submitted in detail,) amounts to $14,500,000. In this estimate is included, 1st: The cost of the right of way, 90 feet in width, as provided for in the Railway Act, together with the extra widths that may be required for deep cuttings, or high em- bankments, and all the necessarv grounds for railwav ' */ CD t purposes, land damages, and the (.'tearing and fencing of the line. 2d. : The graduation of the road-bed to the width required for a tirst-class road. 3d. : Pro- viding for the best (|uality of Bessemer steel rails, weighing GO lbs. to the yard, on the main line, and on the sidings, the best quality of iron rails of the same weight per yard. The rails will be laid upon cross- ties, 26 inches from center to center, with sj)lice or fish joints and iron chairs, and with 12 inches of ballast beneath the ties. 4th. : Providing sufficient equip- ment, and of the best character ; the necessary de})ots, wood and water stations, shops and machinery, docks, 39 ferry bocats, and all the other appointments needed for a first-class railway. The favorable grades and alignment which have been obtained, have increased the cost, and together with the thorongh constrnction, equipment and ap- pointments necessr,ry for the performance of the large business anticipated, have raised the estimate to the amount above named. But the additional cost of pro- curing the low grades and favorable alignment which has been adopted, I deem a wise expenditure, as it will so increase the capacity of the road and lessen the operating expenses, that 50 per cent, of the gross earnings, will be ample to operate and maintain the road, estimating the charges for carrying passengers and freight at the lowest rates. Respectfully submitted. F. N. FINNEY, CJiief Engineer, FoKT EiiiK, Ontario, Feb. 15, 1871, h REPORT OF CONSULTING ENGINEER. New York, February 15th, 1871. To The President and Directors of the Canada Southern Railway Company : Gentlemen : You have requested me to examine the report of Mr. F. N. Finney, your Chief Engineer, who has made instrumental examinations of ihQ i)eninsuhx of Ontario, for the purpose of obtaining the best loca- tion for your proposed railway, between the Interna- tional Bridge at Buffalo and the Detroit and St. Clair Rivers. From this full rei)ort and the map and profiles pre- pared by Mr. Finney, I derive the following general facts : The length of the main line is 229 miles, and of the Branch is 62, making 291 miles. Mr. Finney's maps, profiles and report, show that this is not only the shortest line between the objective points, but also forms a necessary link between the main trunk lines west of the Detroit and St. Clair Rivers, and those east of the Niagara River, and fur- nishes much the shortest route between the West and East, and at the same time secures grades of not, in any place, exceeding fifteen feet per mile. 42 I have a personal knowledge of a considerable por- tion of the conntry, over which your railway will be built, which enables me to confirm (if it was neces- sary,) many of the particulars in the report of Mr. Finney. The line of the road passes through a well-settled countr}^ which will immediately contribute a consid- erable local business, which will annually increase, sufficient in itself, to warrant the construction of the road. The largest contribution of through business to the Great Western, is from the Michigan Central, which will have a shorter and cheaper route to the Atlantic markets, by your line, hence it will undoubtedly avail of these advantages and probably turn over to your road a considerable amount of business, which, by the existing circumstances, it is now compelled to send over the Grreat Western. It must also be considered, that the trunk lines of railway, west of the line of the Detroit River, are now dependent for their connections with the great trunk lines eastward of the Niagara River, upon a single line of railway, through the southern Peninsula of Ontario, which at any time, (as has often happened,) may exact the rates which a monopoly demands, or be compelled to take tl only alternative, of forcing the traffic over the (south) Lake Shore line, which is forty-five miles longer. As some of the managers of the Great Western Railway, have suggested the construction of a "Loop Line " between Glencoe and Canfield, with the avowed object of preventing the construction of the Canada Southern, it is important to your Company, to care- fully examine the reasons urged for the "Loop," and 43 how far it would affect your interests, as well as those of the (Ireat Western, if it should ever be built. The suggested "Loop" would start 80 miles from the western end, and 149 miles from the eastern end of the Glreat Western, and would be 103 miles long, and attain its connection with Buffalo, over 47 miles of a branch of the Glrand Trunk, and the Interna- tional Bridge. The saving in distance on the through business, to New York, which this "Loop" will effect over its present line, would be but five miles. The maximum eastward grades over the G-reat Western, are 55 feet per mile, those over the suggested " Loop" are 35 feet, and those over the used portion of the Grand Trunk, but little more. It is admitted that the alignment and grades over the combined route are more favorable than over the main line, but they are also as much inferior to those of the Canada Southern, as they are superior to those of its own main line. The cost of the 103 miles of this Glencoe " Loop " would be at least five millions of dollars. In the face of these circumstances, the Great Western propose as follows : 1st. To abandon 140 miles of the main line en- tirely, so far as through traffic, which is one-half of their whole business, is concerned ; 2d. To build a road rival to itself, which will cut off a portion of the remaining rural local business, on that 149 miles of the main line ; -i!("«7T II ' Vil'.MP"'l<#.».' ••»- 44 3d, To give to a rival Company (the Grand Trunk) twenty per cent, of all of the diverted, through and local business, which diversion together is about three- fourths of the whole gross earnings ; And : 4th. To leave the local business subject to the ex- isting inconvenience and expense due to the higher grades and less direct route of the main line. If I was called upon to professionally advise the Great Western Company, I would recommend them to reduce certain of their grades eastward, as low as the nature of the country would admit ; and, if they should ever find it advisable to build a loop-line to Buffalo, to start it from a point on their main line, nearest to the Niagara Bridge, where eastward grades, in the direction of the greatest tonnage, can be found; or, in other words, to make as small a diversion of mileage from the main line, by the " Loop," as the na- ture of the country will admit. By this arrangement it will receive as much through traffic as by the " Loop," and will also obtain all of the advantages of the im- provements on the main line, for the benefit of the local business, (which is one-half of the whole,) and will save the expense of the maintenance and operation of an additional 103 miles of railroad, and the interest on its cost. The distance through to New York is sub- stantially the same by the main line, as by the suggested "Loop." A sum insignificant as compared with the cost of the " Loop," expended on the main line, would ren- der its grades as effective as those of the " Loop." The tonnage going west does not exceed one-fourth of that going east, and therefore, a less sum would be re- 45 quired to be expended upon the improvement of the grades in that direction. This advice is not proffered to that Company, but the suggestion is made to further illustrate the position, that the construction of the " Loop " cannot be seriously entertained by the stockholders of that Company. Your line has an advantage in its favor in regard to distance alone, to the principal objective point, of from 33 to 55 miles. There is, however, a more important question to be considered between your line and that of an}" existing one, or any that can be built, being that of its superior advantages of grades and alignment. It is somewhat difficult to state the moneyed value of the latter, as in it is involved the questions of safet}', speed and operating expenses ; but the rei)ort of Mr. Finney shows some facts which deserve more i)artic- ular mention, and which do not, I believe, occur upon any railway on this continent. The whole distance is on straight lines, except four per cent. Two tangents, each of 51 miles in length, are united by a short curve of one degree. What is also remarkable, is that these extraordin- arily long tangents are upon almost le\ A grades, and that the maxima never exceed 15 feet per mile, and these for short distances of only one to three miles. It is the shortest possible line that can be found across this Peninsula of Ontario, between the Niagara and the Detroit or St. Clair Rivers. In regard to grades, the rule may be assumed, as sufficiently accurate for this comparison, that one of twenty feet per mile, lessens the cargo tonnage of a locomotive, half of that which it will haul upon a level, and that an engine of thirty tons will haul three hun- 46 drcMl tons of cargo, on the avoran'o of thn \ cur round, (as tonnago is presented ol" dillcrent [jroportions ofbulk and weight and with the different conditions of the rail,) on a grade of 15 feet })er mile. It is quite true that such engines often haul twice this load, but ex})e- rienced railway men will doubtless consider the above as lair, in its practical application to the sid)ject under discussion. It will be noticed, that in the following calculations, the V average load of an engine of 30 tons, has been taken at 300 tons on a ruling grade of 15 feet per mile, for the mixed traffic of a railway. If, however, we are to consider the movement of regular fixed items of freight, such as grain, stock, oil, coal or lumber, the load of such an engine, over such grades, should be taken at 400 tons for an average of the condition of the rails, weather, and the other circumstances men- tioned. The Great Western line encounters grades of 60 feet to the mile going westward, and those of 55 feet eastward. It is considered as a fair practical presen- tation of this question, to assume, that in regard to the trade moving eastward, the engines on its existing main line, will encounter grades of 25 feet on its west- ern half, and those of 55 feet on the eastern half, and on the suggested G-lencoe " Loop," grades going east, of 25 feet for the western half, and those of 35 feet for the eastern half. The controlling grades of all, except one of the working divisions of the Lake Shore Railway proper, (to Toledo,) are 35 feet, and those of the Michigan Southern and Central are from 35 to 45 feet to the mile. Applying the rule before stated, to these several 47 iin'an linos, it will bo found that the Caniida Southorn will havo tho Ibllowing poirontjigos, in its lavor, ovor tlio sibove-niontionod linos in addition to those of distauce, viz. : as against tho oxisting lino of tho G roat Wostcrn, of 00 por cont., of tho Michigan Sonthorn, of 55 ])oi' cent.; or, as api)liod to (ho suggested " Loop," and to tho Lake Shore Line, of 40 per eent. When we combine all of these advantages of your line, Ave iind in its favor, 1st: That tho saving in the length of miles of construction is, from 33 to 55 miles in length over its coin|)etitors, 2d : That the saving in the cost of maintaining and 0})erating in regaru to distance alone, will be in the same ratio. 3d : That the saving in maintaining and operating, effected by the lesser grades and more direct alignment, will be from 40 to 60 per cent ; and, 4th : That by its shorter line, a diminished speed of trains will reach the ob- jective points in the same time, the saving of which may bo taken as shown by the same ratios. That is, that practically, tho cost of all the expenses of running a train are nearly in the direct ratio of its s})eed. When all of the advantages over any, and all, of the existing and projected competing lines, are again combined, the result proves that your railway will not only be highly productive to its promoters, but will also result in great advantage to all of its connecting western and eastern lines. Both of the existing railways which were located at an early day's engineering across the Peninsula of Michigan, encounter heavy grades, and it would be difficult to avoid them without radical changes in their lines. The Goshen branch of the Southern Michigan, avoids the elevation encountered upon the main line, but even it is not far enough south at its western end 48 to secure the lowest grades for the whole line between Chicago and Lake Eric. The extension of your road over that Peninsula, is found to be not only shorter than any of the existing lines, but also susceptible of grades of not exceeding 15 feet. There is a remarkable geographical feature of the country through Central New York, which must not be lost sight of in this discussion. The chain of moun- tains which extend through Virginia, Maryland and Pennsylvania, ihitten down to the low table lands in western New York, and allows the vast volume of the water from the upper Lakes, to tlow i)ast its northern boundary to the Atlantic, Penetrating this plateau from the eastward, is the Mowhawk River, which vir- tually extends the Lake Erie plateau, on nearly r^ level plane, to within a hundred miles of the Hudson. The elevation of Chicago is 565 feet above New York City ; hence, the planes connecting the two places will generally be in the direction of the heaviest traffic, and gravity becomes an important assistance to the railway tonnage in that direction, and therein ditfers from the lines of artificial water communication by locks, because upon the latter (an idea seldom thought of,) it costs as much to go down hill as it does to go up, much more than it docs upon a level. A line of railway extending from Buffalo to the Hudson River, with grades which will not exceed 15 feet, is attainable. Such a line need not diverge from existing or projected lines, except in pa:*ticular places. It then appears, that a continuous line of railway between Chicago and New York, running over the Canada Southern Railway, may be made, upon which the maxima grades going eastward, will not exceed 15 feet per mile. , 49 This wliole line and alterations will ha built at an early day, and its eflect upon the through traffic will form an e[)och in the history of Ainei'ican radways. It lias heen |)revionsly stated (hat the eargo which an engine of thirty tons will regularly haul, upon a grade of 15 feet ])er mile, is 400 tons. The reported cost of running the trains, both east and west of your line, over the existing grades of 35 feet and upwards, is from one to on(^-and-a-half dollars per mile. Engines of the same size upon your road, will haul twice as much as is now carried over the existing roads, and at a cost but little exceeding that now in- curred upon these lines, and when new and amended lines are built westward to Chicago and eastward to New York, on ecpially advantageous grades, the cost of transport between those })oints will be correspond- ingly reduced upon such staple articles as grain, stock, oil, coal and lumber, which are constantly and regu- larly ottered in large quantities for the through trans- port. If the cost of running the trains of the existing roads is taken at one dollar per mile, (which would be sufficient to charge to this class of regular through business that requires but one handling at each end of nine hundred miles,) the cost of the transport of a bushel of grain from Chicago to New York will not exceed 22 cents, and if the cheap water transport of the Hudson River is availed of, this price may be re- duced two cents per bushel. These estimates of train expenses are based upon the exi)erience of the ordinary track with iron rails. By using steel on the whole line between Chicago and New York, the rails will last five times as long as those of iron, and reduce the cost of the repairs of ,'3,"»V':«^'HPii II iijs 1.. 50 the track ten or fifteen per cent. The use ot steel rails applies more particularly to the Canada Southern I Railway, because they will cost but little more than the best iron rails do in the United States. Such rates as may be reasonably expected will pay to the Railway Companies a respectable net revenue, and when to this is added the saving of insurance and the necessary storing and handling expenses and the certain delivery of the freight at the Atlantic market, within four days after its shipment, at all seasons of the year, the cost of transport by rail will be so re- duced that it cannot fail to give a new impetus to the trade between the West and East and jirove highly beneficial to both sections of the country. Respectfully submitted, WM. J. McALPINE, Consulting Engineer. New York, February 15, 1871, EXTRACTS. At a meeting of the shareholders of the Grreat Western llailwa}' Company, held in London, England, in July last, called to consider the question of build- ing- the "Loop Line " from Ulencoe to Cantield, the chairman, Alderman Dakin, now Lord Mayor of London, in advocating this measure, said, '"It must oe obvious to those who have studied the map which has been sent round to the shareholders, that if the pro- ject called the Southern Railway there shown were carried out in hostile hands, it would in a very mate- rial degree affect the prosperity of this Company. When we remember that the revenue of this Company is dependent upon its through traffic to the extent of two-thirds of the whole earninu's of the line, and that upon that traffic dei)ends our dividend, aiul when we observe that the Southern railway, if constructed, will have better gradients than our own line, and bet- ter means of transportation to New York, we cannot but feel that we are liable to suffer from this project most materially, if not to be damaged to an extent which would be irrei)arable. Therefore the share- holders will see that however reluctant the board mav be to bring before them any i)lan involving the ex- penditure of a large sum of money, yet, as that is nec- essarv to avoid a much greater evil, and to prevent great damage to their interests, we should altogether have failed in our duty if we had omitted to bring the matter before you as we are now doing.'" * * * 52 "Now, this organization (the Canada Southern) de- pends entirely for its being successfully carried out upon the question whether the municipalities and townships through whose districts the line would pass, will subscribe a million and a half dollars as a bonus or free gift to those who promote the line; and it is upon the fulfillment of that condition the construction of the line is depenaent." ^' * * " I am prepared to state to the meeting that we have information, the latest advices having arrived this morning, that the contribution thus to be made is an essential condition of the construction of the line, and this entirely depends upon the vote which we pass to-day. If the Company shall see fit in consequence of the considerations which are placed before it, to de- termine to make this (Loop) line, then the Canada Southern line of Mr. Thomson and his supporters will at once fall dead to the ground. If, on the contrary, you imperfectly support it, or give it a hesitating or a qualified assent, we have reason to believe that such is the state of feeling in the district that the local peo- ple will at once proceed to vote the necessary bonuses, and then those gentlemen in alliance with Mr. Thom- son, who, so far as wealth is concerned, afford a suffi- cient security for their power to do what they under- take, will at once make this line." * * * " If we were to omit to do what we can to prevent that line from being made, it would be one of the most fatal days for the interests of the Great Western of Canada that could possibly arise." * * * "If this line were built, it wovdd reduce the Great , '-"l 53 Western, I have no hesitation in saying, very much to the condition of a local line. If it is allowed to be built, it will effectually cripple the through traffic upon which our dividend mainly depends." * * Mr. Sangstcr, in opposition to the construction of the " Loop Line," remarked as follows : " Everything that you have said tends to urge us on to make that line and to show that some great calamity will come upon us if it be not made. I am of a different opinion. When you stated that this new line is to start from Glencoe, the idea flashed across my mind that there was once a "massacre of Glencoe " in Scotland, and that if this new railway is sanctioned by the share- holders of this Company, there will probably be an- other ''massacre of Glencoe " in Canada. I think there is no necessity whatever for the making of this new line." * * * " I have no doubt that the immediate effect of the present proposal will be that our property will be- come greatly depreciated." * * * "I think that if we are to layout our money it would be better to lay it out on our present line ; sup- posing that it would cost the same amount, we shall in that case still have the same servants and the same stations, and our traffic would no doubt increase. The new line which is proposed, would decrease by so much the traffic on the existing line ; we should have robbed Peter to pay Paul by taking the money out of one pocket to put it into the other. I caution the shareholders of this Company, and I caution you, to beware of what is now contemplated." 54 « ® o o tfi es 1(9 ^, » e 1" br o B is O C e o .i« >« © fell es A >«'. 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I k\ /.// //^ CANADA SOUTHEHN HklLWAY COMPANY .. fWe//^,/ /o i/ arr?/ o/ %mm?y. m //^ 'ymi o/ re/? .S^^c^c/ o?/6 //!ci,'.k/?fi/ nmr //mfr/^rr/ r/?fr/ 4i[t r// //r //e .Jr/me ^i/ffcr .:i6//?f'-rif?itf/>'///y f?f //^e /f^d^ r//7yj rV ^uiurfin anr/ ^/u c/ mc4 ^,e<7L r/^j/!Uyr//e o7miw/ m/ errm/mr/ Sf'me ^/i/Ziom r/ '^o//a44, rinr/ id demte^/ /4 a Wew/ % a/ Sreii^ 'r/oiA', 'iSf/i/fx/ r9/r//ed 0/ ^meUm, 'Wif/d/ee-i , am/ com^e?/('??(7 /o //e??i a??r///e/) i\ w/, /o//d. ^em??i/e.i. j^f^f.ieii/ a?ir/ j/f////fe ^/?y/e?/y af?^/ e/ZecU . /untc^^ed am/ a////ta/ena??ceo. n.ij/eia// excr^i/ /y /iami/ei on //e /00/i c/ Me ^om^m???/ a/ fY-d aaeffey in //e daer/ ^Zj/ i.f\ i uyf.j/'ia/wn r/ ct/meu/i/i cc'ym/ /^ecn A //e /iam/^i aa^n/ 0/ //e '^om/mny. W/ii i en coa?iYa'k'y^?ef/ /jy //e .Uff'r/ ^H^.i/ees, rd //eii de/cceddoid in i^e Wim/. %x\\%\u%. ■,r*-x/-''^_.^>JN#^..J^~Ni::^ /-^,_^_N-'*>r^.>-N/^^ Z--^. -jti-^^ '^">^^^-V*>'>-~r- S^-^^-o '^N.->^'>->-V'^i>>^"t fcri'ftartt. ^ y-^r-^ >r>j::^ '*--.' .^, >-^,-^- r-^^ .\^-^^ 1 •^' P"^* j^-^' '**^--'^—. lr% Transferred hy • to, and rcijhtered in name of .187 Agent. No. FIRST MOE Conditio s\ This Bond, at the option of the holder, will he made a Sterling Bond, hy application at the Agency of the Coiu- pany in JVeio York or London, England : principal and interest pay ahle at the Comiyamfs Agency in Lon- don, England, or in the City of Neir York, at the rate of 1 100 hundred pounds )^terling for the principal of the hand and seven pounds sterling for each coupon. « §nmi^Hl §1 Union Irnsl MMH' #: } f No. FIRST MORTGAGE 7 PER CENT. #1,000 hM ''» §rmcipnt §Hmhh ^mitj M Id OB, AT THE don Tml Coniaii; of lew M, p. ^, ft. OONDfTIOX. This Bond is suhj<'ct to he redeemed at jxtv ih pur- suance of the Mortursaa7\ce if the moiiijaije, and the result of the lot in each case will he /nihliscil in \cic York^and Lowlon^Knijland, hy adcertisennnt in a daily nexospaper of each of said cities, at least thirty dayx he- fore the time (f redemption ; from ivhich time interest on the hands denignated shall cease to accrue, namely : TIME or REDEMPTION. AMT. OF nONUS TO BE HEDEEMEU. Jiiunary 1, 1875. S 82,000. Jamuii-y 1, 187G. 87,000. Jiiunary 1, 1877. 0M,OO(). January 1, 1878. 100,000. Jamuiry 1, 1870. 107,000. January 1, 1880. 114,000. January 1, 1881. 122,000. January 1, 1882. 131,000. January 1, 188:5. 140,000. January 1, 1881. 150,000. January 1, 1885. 1(50,000. January 1, 188G. ■ 172,000. January 1, 1887. 184,000. January 1, 1888. 190,000. January 1, 1889. 210,000. January 1, 18{)(). 225,000. January 1, 1801. 241,000. January 1, 1802. 257,000. January 1, 1893. 275,000. January 1, 1804. 295,000. January 1, 1805. 315,000. January 1, 180(). 337,000. Jauuiiry 1, 1807. 3(51,000. January 1 , 1808. 38(5,000. January 1, 1800. 413,000. January], 1000. 442,000. Januaiy 1, 1001. 473,000. January 1, 1002. 50(5,000. i :. January 1, 190;}. 542,000. January 1, 1904. 580,000. Januaiy 1, 1905. - _ (520,000. January 1, 190G. ■"" 684,000. . $9,000,000. CoNDiTioy. 7'hlft lioiid is suhjt'ft to be redeemed of. pur in jnir- surf nee ,i)00. 413,000. 442,000. 473,000. 50(5,000. 542,000. 580,000. 020,000. 684,000. $9,000,000. MORTGAGE. This Indenture, mado this fifteenth day oi December in the year of onr Lord One thousand eiglit hundred and seventy, between the Canada Southern Railway Company, a body politic and corporate, duly incorporated by the Legislature of the Province of Ontario, in the Dominion of Canada, of the first part, and William Lawrence Scott, of the City of Erie, State of Pennsylvania, Banker, and Kenyon Cox, of the City and State of New York, United States of America, Banker, Trustees as hereinafter mentioned, of the second part : Whereas, The Canada Southern.Railway Company, under the powers conferred by the several statutes relating tiiereto, have commenced and are engaged in the construction of their line of Railway in the Province of Ontario, which, by the said statutes, they are duly authorized to construct from a point in the Township of Bertie, near the Village of Fort Erie, passing through the Town of St. Thomas, to some point in the County of Essex, in or near the Town of Sandwich, or the Town of Windsor, and also to some point in or near the Town of Amherstburg in the same County, and also to a point on the River St. Clair, in the Township of Moore, in the County of Lambton ; and whereas, to enable the said Company more readily to complete its said undertaking, the said Company hath resolved to borrow under the provisions of the Railway Act, and to issue Bonds for an amount not to exceed in the aggregate the sum of Nine millions of dollars, nor more than Thirty thousand dollars per mile of Railway to be constructed, and to secure the payment of the said Bonds, with interest, by the Mortgage, pledge and hypothecation of the said Railway, its lauds, tolls, revenues, present and future property and effects, franchises and appurtenances ; 68 And Whkrkas, tlic said Bonds, so to be issued \\y the said Coinpany, JH'e to be eertitied y the countersigning thereof by the parties of tlie second i)art, or the Trustees for tlie time being of tlieso presents, and such countersigning sliall be evi- dence that such Bonds are of tlie issue intended to be secured by this Mortgage, and are to be of the nature and effect follow- ing, that is to say : First, registered Bonds of the denomina- tion of one thousand dollars, transferable only on the register of the Company, and, Secondly, Bonds with Coupons attached, payable to John F. Tracy, or bearer, of the denomination of one thousand dollars. Each class of Bonds to be payable in lawful mone}' of the Dominion of Canada, in the said City of New York, on the first day of January, in the year one thousand nine hundred and six, with interest in the meantime at the rate of seven per centum per annum, payable in like lawful money of the Dominion of Canada, haU'-ycarly, in the said City of New York, on tae first days of January and July in each year ; with a provision that at any time all or any part of the said Bonds, at the option of the holder, will be made Sterling Bonds, payable in Sterling Money of Great Britain, in Lon- don, England, or in the City of New York, at the rate of two hundred pounds Sterling for every bond, and seven pounds Sterling for each half-year's interest or coupon; and such Sterling Bonds shall carry all privileges of conversion or otherwise as fully as the Bonds originally issued, or intended to be issued, under these presents ; And "Whereas, the said Railway Company hath agreed to execute these presents as and for a first mortgage to secure the said issue of the B(mds aforesaid, being strictly limited to the sum of Nine millions of dollars in the aggregate, and the said sum of Thirty thousand dollars per mile of railway to be constructed ; New THEREFORE, tlicsc presents witness that for the pur- pose of securing the payment of the said Bonds, being in all the said sum of Nine millions of dollars, limited as aforesaid, with interest as aforesaid, and for the further consideration of one dollar in hand paid by ♦^he parties of the second part to the 59 party of tlie first part, the receipt whereof is hereby acknowl- edged, the party of the first part hath granted, bargained and sold, and by these presents doth grant, bargain and sell nnto the said parties of the second part, their heirs and assigns, and- to their snccessors in the trust, all tiio following, present and future to be acquired estate and property of the said Com- pany ; that is to say, their Railway and undertaking made, in course of construction, and to be made between its terminus in the township of Bertie, near the village of Fort Erie afore- said, to its respective termini, at or near the towns of Sand- wich, Windsor, and Amherstbnrg, aforesaid ; and also to its terminus on the St. Clair River, in the townshij) of Moore, aforesaid ; and being situate in the following counties, that is to say: Welland, Haldimand, Oxford, Norfolk, Elgin, Kent, Essex, Middlesex and Lambton, all in the Province of Ontario, and Dominion of Canada; including the right of way, and the land occupied thereby ; together with the superstructure and tracks thereon, or to be thereon ; and all iron rails, ties and other materials placed or to be placed or used thereon, procured or to be procured therefor, and all bridges, viaducts, culverts, fences, stations, station grounds, buildings and erections thereon, and all machine shops and other shops held or acquired for use, in connection with said Railway or the business thereof; and including also all locomotives, tenders, cars and other rolling stock or equipment; and all machinery, tools, implements, fuel and materials for the constructing, operating, repairing or replacing the said Railway or any part thereof, or any of its equipments or a))purtenance8; whether now held or at any time hereafter acquired, all of which things are hereby declared to be appurtenances and fixtures of the saiJ Railway, and to be included in and to pass by these presents ; and also all franchises connected with or relating to the said Railway, or the construction, maintenance, or use thereof, now held or hereafter acquired by the said party of the first part, and all corporate and other franchises which are now or may bt hereafter possessed or exercised by the said party of the first part ; together with all and singular the tenements, hereditaments and appurtenances thereunto belonging, or in anywise appertaining, and the reversions, 60 remainders, tolls, incomes, rents, issues and profits thereof, and all the estate, riglit, title, interest, property, possession, claim and demand whatsoever, as well in law as in equity, of the said party of the first part of, in and to the same, and any and every part thereof with the appurtenances. To have and to hold the;said premises and every part thereof until the said parties of the second part, as joint tenants and not as tenants in common, and the survivor of them, and to the heirs and assigns of such survivors, and to their successors in the trust, to the only proper use and behoof of the said parties of the second part, and of the survivor of them, and of the heirs and assigns of such survivor, and to their successors in the trust ; but nevertheless upon the trusts, and for the purposes herein expressed, that is to say : First. — Until default shall be made in the payment of prin- cipal or interest of the said Bonds or some of them, or until default shall be'made in respect to something herein required to be done or kept by the Canada Southern Railway Com- pany, the said Railway Company shall be suffered and per- mitted to possess, operate, ma. age and enjoy the said Railway with its equipments and appurtenances, and to take and use the rents, incomes, profits, tolls and issues thereof, in the same manner and with the same effect as if this deed had not been executed. to tin ations them tolls, and o Second. — In case default shall be made in the payment of any interest on any of the aforesaid Bonds issued, or to be issued, according to the tenor thereof, or in any requirement to be done or kept by the Canada Southern Railway Com- pany, and if such default shall continue for the period of six months, it shall be lawful for the said trustees or the survivor of them or their or his successors, personally or by their or his attorneys or agents, to enter into and upon all and singular the premises hereby conveyed, or intended so to be, and each and every part thereof, and to have, hold and use the same, operating, by their or his superintendents, managers, receivers or servants, or other attorneys or agents, the said Railway and conducting the business thereof, and making from time 61 of iCllt of Ir to be Irement Oora- of six Urvivor llieir or Ingular id each same, jeivers [ailway time to time, all repairs and replacements, and such useful alter- ations, additions, and improvements thei-eto, as may seem to them or him to be judicious, and to collect and receive all tolls, freights, incomes, rents, issues and profits of the same and of every part thereof, and after deducting the expenses of operating the said Railway and conducting its business and all of the said repairs, replacements, alterations, additions, and improvements, and all payments which may be made for taxes or assessments, prior to the lien of these presents, upon the same premises or any part thereof, as well as a just com- pensation for their or his own services, to apply the moneys arising as aforesaid to the payment of interest in the order in which such interest shall have become due or shall become due, ratably to the persons entitled thereto ; and after paying all interest which shall have become due, to apply the same to the satisfaction of the principal of the aforesaid Bonds, which may be at that time due and payable, ratably and without discrimination or preference ; and after the said in- terest and principal so in default shall have been fully paid, then the said trustees shall restore the possession of the Rail- way with its franchises and appurtenances to the said Railway Company and its successors. Third. — The Canada Southern Railway Company shall, from time to time and at all times hereafter, and as often as thereunto requested by the Trustees, execute, acknowledge and deliver all such further deeds, conveyances and assu- rances in the law for the better assuring unto the Trustees and their successors in the trust hereby created upon the trusts herein expressed, the said Railway, with the equipment and appurtenances hereinbefore mentioned or intended so to be, and all other property and eft'ects whatsoever which may at any time hereafter be acquired for use in connection with the said railway or any part thereof, and all franchises now held or hereafter acquired, as by the Trustees or the survivor of them or their successors, or by their or his counsel learned in the law, shall be reasonably advised, devised or required. Fourth. — The Eoard of Directors of The Canada Southern 62 Railway Company may, from time to time, by resolution, re- quire the said Trustees to convey, by way of release or other- wise, to discharge from the operation of these presents, any lands acquired or held for the purposes of stations, depots, shops, or other buildings or premises connected therewith, or which may be held for the supply of fuel, gravel, or other material, or any lands which may have become disused by reason of a deviation in the said line, or of a change of the location of any station house, depot, shop or other building or premises, or an}' lands which the said Board of Directors may deem it expedient to disuse or abandon, by reason of such deviation or change ; and which lands respectively shall, by resolution of the said Board, be declared to be unnecessary for the i)nrposes and business of the said Company ; and in every such case the said Trustees, when so required, shall execute such releases and discharges accordingly' ; and it i?s liereby declared that any lands which may be acquired in substitution for lands so released or discharged, as well as any lands subsequently acquired by the said Company for the use or convenience of its Hallway, or in connection therewith, shall be deemed to come within the operation of these presents, and to be included therein, and shall be conveyed to and held by the said Trustees, upon the trusts of these presents ; and it is further declared, that the said Company may, from time to time, sell or dispose of any part of the equipment, rolling stock, machinery, implements or materials at any time held or acquired for the use or purposes of said Railway, as may, by resolution of the Board of Directors, be declared to be no longer useful or necessary for the said Company's business, and any new or subsequently acquired equipment, rolling stock, machinery, im{)lements atid materials, shall come within and be subject to these presents. Fifth. — If the said Canada Southern Railway Company shall well and truly pay the sums of money required to be paid by the said Company, and all interest thereon according to the tenor and effect of said lionds, and shall well and truly keep and perform all things herein required to be kept or performed by the said Company, according to the true intent 63 and meaning of these presents, or if the said Bonds and in- terest pajablo thereon become in nnywise paid and satisfied, then in that ease the estate, right, title and interest of the said parties of the second part, and of their successors in the trust hereby created, shall cease, determine, and become void, otherwise the same shall be and remain in full force and virtue. ly, as ared to npany's ipment, shall ampany d to he cord ins,' 1 truly kept or intent Sixth. — It is mutually agreed by and between the parties hereto that the word Trustees as used in these presents shall be construed to mean the Trustees for the time being, whether one or both be original or new, and whenever a vacancy shall exist to mean the survivor or continuing Trustee, and such Trustee shall, during such vacancy, be competent to exercise all the powers granted by these presents, to the parties of the second part; and it is mutually agreed, by and between the parties hereto, as a condition on which the parties of the second part have assented to these presents, that the said Trustes shall not in any manner be i*esponsible for any default or misconduct of each other ; and that the said Trustees shall be entitled to just compensation for all services which they may hereafter render in their trust, to be paid by the said Company ; and that either of the said Trustees or any suc- cessor may resign and discharge himself of the trust created by these presents by notice in writing to the said Canada Southern Railway Company, and to the existing Trustee, if there be such, ninety days before such resignation shall take effect, or such shorter notice as they may accept as adequate notice and upon the due execution by him of the conveyances hereinafter required ; and that the said Trustees or either of them may be removed by the vote of a majority in interest of the holders of the aforesaid Bonds then outstanding, the said vote being had at a meeting called by the holders of at least Five hundred thousand dollars of said Bonds, by advertise- ment published for six consecutive weeks, by insertion once per week in a daily newspaper of large circulation in the cities of New York and Toronto, respectively, and at i^aid meeting said bondholders may vote in person or by proxy, and their said vote shall be attested by an instrument under 64 the hands and seals of the persons or their proxies so voting ; and that in case at any time hereafter either of tlie said Trustees or any Trustee hereafter appointed, shall die or re- sign or be removed as herein provided, or by a Court of com- petent jurisdiction, or shall become incapable or unlit to act in the said trust, a successor to such Trustee shall be appointed by the Board of Directors of the eaid liallway Company, with the consent of the holders for the time being of a ma- jority in interest of the said Bonds, evidenced by any writing to that eflect from them respectively, or with the consent of a meeting duly held of the said bondholders, called after ad- vertisement in that behalf, published for the time and in the manner hereinbefore mentioned, and tiie Trustee or Trustees so appointed, with any Trustee so surviving or continuing, shall thereupon become vested with all the powers, authorities and estates granted to or conferred upon the parties of the second part by these presents, and all the rights and interests requisite to enable him to execute the purposes of this trust without any further assurance or conveyance so far as such eft'ect may be lawful ; but the surviving or continuing Trustee shall immediately execute all such conveyances or other in- struments as may be fit or expedient for the purpose of assur- ing the legal estate in the premises jointly with himself to the Trustee so appointed ; and that upon the death, resignation or removal of any Trustee, or any appointment in his place in pursuance of these presents, all his powers and authorities by virtue hereof shall cease, and all the estate, right, title and interest in the said premises of any Trustee so dying, resign- ing, or being removed, shall, if there be a co-Trustee surviving or continuing in office, wholly cease and determine, but the said Trustee so resigning or being removed shall, on the writ- ten request of the new Trustee who may be appointed, im- mediately execute a deed or deeds of conveyance to vest in Buch new Trustee jointly with the continuing Trustee, and upon the trusts herein expressed, all the property, rights and franchises which may be at that time held upon the said trusts. Or in case it shall hereafter at an 3'^ time prove im- practicable, after reasonable exertions to appoint in the man- ner hereinbefore provided, a successor in any vacancy which may \ 65 may have happened in said trust, or in case the trust shall become wholly vacant, application on behalf of all the holders of the Bonds secured hereby may be made by the surviving or continuing Trustee, or if the trust be wholly vacant, by the application of the holders of the said Bonds to the ag- flfregate amount of One hundred thousand dollars, to the Court of Chancery in tlie Province of Ontario, for the appointment of a new Trustee, or new Trustees. Seventh. — It is hereby declared and agreed that any of the Coupon Bonds, the issue whereof is by these presents secured, may at the option of the holder thereof be converted into or exchanged for a like amount of Registered Bonds, the issue whereof is hereby secured ; And it is also further agreed, that the holders of the Registered Bonds secured by these presents, may from time to time transfer the same on the books of the Company, and that new Registered Bonds may be issued in the place and stead of those surrendered for can- celment on such transfer, and that this mortgage shall enure to the benefit and security of the holders of such new sub- stituted Bonds, which may be issued on such transfer and cancelment. And said Board of Directors in its discretion, at any time and from time to time, may allow the conversion or reconversion of Registered Bonds into Coupon Bonds, by surrender and exciiange, at tlie request of the holders of such Registered Bonds, and such substituted Bonds shall be se- cured by these presents in like manner as the Registered Bonds so surrendered. Eighth. — And it is hereby further declared and agreed that at any time all or any part of the said Bonds whether regis- tered or coupon, at the option of the holder thereof, sl\all be made by ■iaid Company Sterling Bonds, payable in Sterling money ot Great Britain, at the rate of Two hundred pounds Sterling for each Bond, and seven pounds Sterling for each half-year's interest or coupon ; and such Sterling Bonds shall be made payable in London, England, or in the City of New York, as sucli holder shall then elect; and such Sterlir. Bonds shall be held to be secured by these presents, and issued 66 thereunder, and to carry and to be entitled to all privileges of conversion or otherwise, as fully as the original bonds is- sued, or intended to be issued, payable in lawful money of the Dominion of Canada. And the said Company may, by resolution of the Board of Directors, from time to time, es- tablish offices in New York and London respectively, for the transfer of registered Bonds, and for converting Bonds into Sterling Bonds as above. Ninth. — And the said Canada Southern Railway Company hereby covenants and agrees to and with the said parties of the second part, and their successors and survivor, for the benefit and in trust for the holders of all the said Bonds, that said Company shall establish a Sinking Fund adequate for the redemption at par of all the said Bonds, at or before the maturity thereof; and that said sinking fund shall be pre- served and used for such redemption, and for no other use or purpose; and that said Company will pay into said sinking fund, on or before the first day of January, One thousand eight hundred and seventy-five, the sum of Eighty-two thou- sand dollars, and thereafter will pay into said sinking fund on the first day of January of each succeeding year the sev- eral sum herein written after such year, that is to say, in the year 1876, $87,000; in 1877, $93,000; in 1878, $100,000 in 1879, $107,000; in 1880, $114,000; in 1881, $122,000 in 1882, $131,000; in 1883, $140,000; in 1884, $150,000 in 1885, $160,000; in 1880, $172,000; in 1887, $184,000 in 1888, $196,000; in 1889, $210,000; in 1890, $225,000 in 1891, $241,000; in 1892, $257,000; in 1893, $275,000 in 1894, $295,000; in 1895, $315,000; in 1896, $337,000 in 1897, $361,000; in 189>, $386,000; in 1899, $413,000 in 1900, $442,000; in 1901, $473,000; in 1902, $506,000 in 1903, $542,000; in 1904, $580,000; in 1905, $620,000 in 1906, $684,000 ; and that on the first day of January, in the year One thousand eight hundred and seventy-five, and yearly thereafter, said Company shall pay and apply out of said sinking fund, the several sum so then respectively ap- propriated as above, for said sinking fund, to the payment and redemption of said bonds to the like amount at par ; that 67 the particular Bonds so to be redeemed shall be determined in every case by lot, cast or drawn at some time in the month of November next previous to such redemption, by some dis- interested person or persons appointed by the Company; and the result of such lot, designating and specifying the par- ticular Bonds to be redeemed, shall be published in the cities of New York, and London, England, by advertisement in a daily newspaper of each of said cities at least thirty days be- fore the day of redemption ; and that all Bonds so redeemed and all coupons thereof, shall be canceled by the Company in the presence of the Trustees, who shall keep a list thereof. No interest shall accrue on any Bond so designated for re- demption, after it thereby has become payable, and the Com- pany shall be ready to pay the same. In witness whereof^ And in pursuance of a resolution of its Board of Directors, passed on the lifteenth day of Decem- ber, One thousand eight hundred and seventy, the party of the first part has caused its corporate seal to be affixed to these presents, at Fort Erie, in the Province of Ontario, Dominion of Canada, and the same to be attested by the sig- natures of its President and Secretary, and the said parties of the second part have hereunto set their respective hands and seals to testify their acceptance of the said trust, the day and year first above written ; and these presents are executed in nine parts for the purpose of registration in the several counties above mentioned. Signed, sealed and delivered, in presence of President. Secretary. Trustees.