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'"''^^^^^>^avr/?£.,^ALANTlc'-"*^ Map of the Vermont Division ■F-^F Portland and Ogdenskrg Railroad. AND CONNECTIONS. THE NEW MONTKEAL-ATLANTIC LINE. ■MUM VERMONT DIVISION OF THE Portland and Ogdensburg RAILROAD. iHE Vermont Division of the Portland and Ogdensburg Railroad is the central division of the new Trunk Line which bnngs the Lakes and the Atlantic nearer, bj 50 miles, than any other route. Montreal, is brought, bj this line, 57 miles nearer her present winter port-Portland-than any other At- lantic port and also nearer Boston than by any existing route. Local charters having been obtained before it was contem- plated to bui d a consolidated through route, the Vermont Division consists of tlie LAMOILLE VALLEY, THE MONTPELIER AND ST. JOHNSBURY, AND THE ESSEX COUNTY RAILROADS, ' the eastern terminus at Daiton, on the Connecticut River, and m mOer ""^ ^™^''''' °'' ^^^' Champlain ; the entire length At Daiton the road connects with the Maine and New Hampshire Division of P. and O. R. R., whose eastern terminus 18 Portland. At S wanton, connections are made with roads completed to Ogdensburg and Montreal, witli wliieli favorable arrangements have been made for throngh traffic. The three corporations, composing one line, while preserv- ing their proprietary and chartered rights separate and distinct, have united their business interests, and joined their respective properties so as to form one continuous railroad, and the whole has been placed under one executive control and management, and forins, for all the purposes of railrocid construction and opera- tion, one Company, under the title of the " Yekmont Division OF THE POKTLAKI) AND OgDENSBUKG RaILROAD LiNE." The town and individual subscriptions to the capital stock amount to $1,200,000, and to provide the balance needed for the construction and equipment of the line, the Directors were authorized, by a vote of the stockliolders, to issue their JOINT MORTGAGE BONDS, payable in 3 891, bearing six per cent. iNTEREsr r-ER ANNUM IN GOLD, uot to excccd ill amouut $20,000 per mile of the road, principal and interest payable in GOLD COIN. The President and the ofhcers of the respective com- panies have, therefore, executed and duly placed upon record, ^Jirst and only mortgage, dated May 1st, 1871, to Messrs. Luke P. Poland, Prest. First National Bank, St. Johnsbury, and Abraham T. Lowe, Prest. First NatioTial Bank, Boston, Trustees for the bondholders, covering the whole line of their roads in Vermont (117 miles), together with the franchises, equipment, etc., now on hand and hereafter to be purchased, as security for tiie repayment of the bonds. The bonds, registered or coupon, issued in conformity with this instrument, in t!ie preparation of v/hich eminent legal counsel in New York citv and in Vermont, were consulted, furnish a safe and desirable security for the in- vestment of surplus capital. Tiiey may be as confidently re- ceived and recommended as those of any State, municipality, or corporation in the country, for the following reasons : SHORTEST TRUNK LINE. lirst. They are the first lien on the shortest trunk line be- tween the lakes and the seaboard, and the revenue from the THROUGH TRAFFIC cannot fail to be large and remunerative, as I f I ' the following facts will prove. Montreal demands this — the shortest outlet to the ocean. Portland is the winter port of Montreal. For twenty-tour weeks the Montreal steamships sail from Portland to Europe, the St. Lawrence River being impas- sable by reason of ice. The traffic between the two places is immense. At one time during the winter of 1871-2, five ocean steamships lay in Portland harbor, some of them 3,200 tons each, waiting for freigiit from Montreal and the West, which the existing railroad facilities could not forward with sufficient dispatch. At tiie same time the storehouses there, were packed full of return merchandise seeking transit to the interior. Since that date, another line of first-class steamships has been added to the fleet tributary to and receiving freight from the same railroad at Portland. The " Allan '' line, alone, running to Liverpool, for twentyf'ur weeks of the year takes 3,000 tons of freight per week, and returns a like amount of imports for the Canadas. The larger portion of the traffic between the upper and lower provinces of Canada passes by rail from Montreal to Portland, and is distributed from Portland over the various routes. This traffic continues all the year and is of great magnitude. The produce now seeking export via Portland from the in- terior, finds the present means of transportation utterly inade- quate to its demands. Lnports are equally obstructed. Portland is the fourth ])ort of entry in rank, in the amount of business pass- ing through ti.e Custom House. Anotlier line between Montreal and the (rreat Lakes and the Ocean is even now urgently de- manded for the -raffic pressing forward for accommodation. Eno:inous bulks of lumber are at tliis date piled up alongside the Grank Trunk Railroad unable to reach tide-water owing to the mass of western produce in transit. Precisely what Montreal needs, the Portland and Ogdens- burg Railroad \yill furnish— a short trunk line to the best harbor on the Atlantic coast, a port furnished with marginal railway, an elevator, a harbor front of five miles, two lines of trans-ocean steamships, steamers, packets and railroads to all coastwise points, and facilities for dispatching business equal to the best in the world. I This Road also furnishes to Montreal a more direct route to Boston, ajid will receive large revenues from the freight and passenger traffic between the commercial centers of Canada and New England. Ogdensburg needs this line, to meet the requirements of the business centering at that point, and will, like Montreal, con- tribute largely to tiie through trajffic which must from necessity flow over it. The enlargement of the Welland Canal, now going on, will send increased amounts of western merchandise to Ogdensburg. From this point to the Atlantic, freight can pass over the Port- land and Ogdensburg Railroad, tor $1 57 per ton less than by any other route. No other railroad ciin for a moment compete. Connection, also, is to be established at Montreal and Ottawa with the great system of Canadian Railways now going int^ construction; embracing about 5,000 miles of line. By a road in process of construction from Swanton to Ottawa, the freight of tiiese Canadian rriilroads can reach the Atlantic by the P. and O. R. R. at a saving of over 80 miles. Tljis immenselv large freight from the West and from Canada will find over this road a route superior, to any other for distribution through Northern and Eastern Vermont and New Hampshire, as well as to Boston, connecting with the Connecticut and Passumpslc, and Boston, Concord and Montreal and other railroads, giving to the metropolis of New England a new and most desirable additional Western outlet. We claim, then, for the Vermont Divivsion of the Portland and Ogdensburg Railroad, a thkougii business of great magni- tude and profit. LOCAL BUSINESS. Second. The local business alone cannot fiiil to be from the outset (as it has already proved), of great ..nd increasing importance — sufficient of itself to insure a revenue sufficient to meet interest obligations and operating expenses. The numerous villages on the line of this road, on an average not more tlian five miles apart, are in one of the old States of New England, with abundant, water-powers now I 5 profitably used, and far greater awaiting development, also valnable (piarriea of slate, marble, granite and limestone, and an immense lumber trade demanding this road. It is estimated tbat tlie first year after completion, thirty million feet of lum- ber will be cai-ried. These villages are, on an average, sixteen miles distant from other railroads. At St. Johnsbury are situ- ated the extensive foundries and factories of the Messrs. Fair- banks, the gi-eat scale manufacturers. Their freights last year amounted to over twentv thousand tons, and their trade is rapidly increasing. One hundred and twenty-five thousand people, located on and near the line, whose property is not less than $90,000,000, must seek a market by this railroad. The movement of freight, in and out, without railroad facil- ities, was 122,000 tons in 1870, and a great stimulus has since been given to every industry by the opening of this road — in- creasing in a large ratio the profitb estimated from this source of revenue. Local business for the road, therefore, is not to be created, it already kxists. PLEASURE TRAVEL. Third — The summer travel over the line must be large, and constantlv increasinij. Measures have been taken which will insure the early completion of the link frcni Cambridge to Essex Junc- tion, there connecting with a line already completed to Burlington. Tliis will open the sliortest route from Saratoga and the Adirondack Mountains (through Lake George and Lake C^hami^lain) to the NVhite Mountains, embracing also other points of interest to the tourist : Mount Mansfield, Lakes Memphremagog and Willoughby, and the celebrated Mineral Si)rings of Northern Vermont. No pleasure route in the Eastern States can compare with this, as it will take the tourist by the most direct line to the most popular summer resorts in the country. On Ihe completion of the road through the "White Mountain Notch, on a low estimate 100,000 persons will annually visit this region ; and the road will, from this one source, necessarily derive a large revenue. I 6 A HOME SECURITY. houTlk — Their bonds are a home security, and in the con- struction of the line, the fuanagement is such, as to ensure throuj^hout tlie soundest judn^ment, the severest economy, and the strictest honesty \\\ the conduct of the work. A SAFE AND CONVENIENT INVESTMENT. Fifth — Past experience has shown that good raih'oad bonds have j)r()ved to be unusually sfe, reliable, and profitable invest- ments for spare capital. They are more convenient than lauded purchases or real estate »)u>rtgages, being in smaller i)arcel8 ; and inay bo more easily turned into cash, or used as security for temporary loans. Equal legal and visible security upon that which has cost money, and is earning money, is not olfered by nation. State, or any other corporation. A careful examinaticMi of the map attached hereto, showing the necessity of this great New England road to accom- modate a business existing which demands railway accommoda- tion ; and a careful consideration of its valuable connections with existing roads must convince all of the value of its First Mortgage Gold Bonds, and assure investors that no more safe and profitable securities are now ofiereu than those of this central division of the shortest Trunk Line from the West to the East. MEMORANDA. R. R. Connections are made as follows : — At SWANTON, the western terminus, with the Og- densburg and Lai^e Champlain Railroad, and forming the direct line to Ogdensburg and the lines reaching thence westward to OsAvego, Rochester, Buffalo, Chicago, and the Far West. At the same point also with the Vermont and Canada Junction Railroad^ opening an additional and shorter route between Boston, Portland, and Montreal, and also through it with the Lalce Champlain^ Rensselaer and Saratoga, and Hudson River lines. w r, At ST. JOriNSnURY with thu Connecticut and Pasmmp- sic Rivers Railruatruction — notwithstanding advance in Iron — has been $700 per mile less than <> 'ginal enlimate; the cost of road $15,000 per mile less than average cost of New England railroads. Statistics ]»rove that all New England railroads earn <-heir interest obligations and operating expeiises on a cost double that of the Vermont Division of the '^ortland and Ogdensburg ilailroad. The Passumpsic Railroad — which this road intersects at St. Johnsl)ury — has had till lately no through connections, and yet it has paid — except for a time when the net income was used for extension purposes — 6 per cent, dividends upon its stuck, and the same time interest upon its bonded debt, and laid aside a7inually a certain amount as a sinking fund for the redemption of its bonds- Its success is wholly due to its local traffic; f^'ul yet, twenty- three towns on this road, north of St. Johns])ury, hav^e a valuation nearly one million dolh^i less, than sixteen towns taken in course on the Portland A: Ogdensl)urg Railroad, west of St. Johnsbury. B} this line, the distance saved over present routes, from Saratoga, Lake George, and Lake Champlain, to the White Mountains, will be 70 miles. The widening of the Canadian canals, and the building of 8 the Cauglmawaga canal, uniting the St. Lawrence and Lake Champlain, will enable vessels of 1,000 tons, which receive their freights at Milwaukee, Chicago- and all the Lake ports, to dis- charge them, without breaking bulk, in the storehouses and elevators at the Swanton and Burlington termini of the Port- land and Ogdensburg Railroad. By this route the land trans- portation between the great grain markets of the west and the seaboard cities of distribution and foreign export, is reduced to a minimum — 227 milef>, less than any other j^ossihJe line — and but one-half to one-f(.)urth the distance the greater part of the western products are now moved by rail. The eastern terminus of Lake navigation being thus transferred to a point so much nearer the Atlantic sliijiping ports, cannot fail to prove of im- mense advantage to this Trunk Railroad Line, which furnishes the shortest route to Portland, tlie best harbor on the xitlantic coast, and to Boston, the second city on the continent in com- mercial importance. The recent opening of the European & North American Railway has an important bearing on this enterprise, as Toronto, Ottawa, Montreal, the commercial centres of the Western Prov- inces of the Dominion, are thus directly united by the Portland and Offdensburi!: Railroad with St. Job.n and Halifax, the lead- ino- cities of the Eastern Provinces. With Montreal and Ottawa so much nearer Portland and Boston by this route, it is safe to expect, from tins source alone, a passenger and freight traffic of no ordinary l>ulk and profit. As Lake Champlain and the Adirondack Mountains prevent the construction of any competing East and West Trunk Line, for over 150 miles, a glance at the map will show that the Vermont Division of the P. and O.R. R., with its advantage in mileage, cannot fail to receive its full share of the great through traffic wliich now awaits its completion. t ^» THE VERMONT DIVISION MADE THE CENTRAL LINK OF THE NEW MONTREAL-ATLANTIC LINE. t 4 February^ 1874. Since the preparation of the foregoing statement, negotia- tions whieli have a most important bearing on the fatiire of the Portland and Ogdensburg Railroad have been completed. A business alliance has been effected witli one of the strongest and most prosperous railroad corporations of New England — tlie Eastern of Massachusetts — by whicii that company becomes directly interested in the early completion and successful opera- tion of the Portland and Ogdensburg line. The Eastern Rail- road, which, joining the Portland and Ogdensburg at Nortli Conway, N. II., and in the oity of Portland, Maine, commands tweni y millions of invested capital, and controls six hundred miles of railway in actual operation, has entered into an ar- rangement by which it agrees to pay to the Portland and Og- densburg thirty per cent, of tlie receipts on all business received from or delivered to the latter road at the point of junction, North Conway, N. H., and Portland, Maine. This obligation covers freight ti-afHc bound west as well as east, and passenger as well as freight receipts. The importance of this alliance to all the parties composing it can hardly be over estimated ; while to the Vermont division of the Portland and Ogdensburg Railroad, it is, for readily apparent reasons, of preeminent value. The Ver- mont division, constituting the central link of this new and short line from the lakes to the sea, must of necessity be em- ployed in all east and west transportation. Upon the western terminus various lines from Montreal and Ogdensburg converge, while there is no point at which eastern-bound freight can be r^l 10 diverted, until it has passed beyond the limits of the Vermont division — facts equally true of trade and travel from the sea- board to the lakes and interior. Holding thus the key of the entire line, the Vermont division cannot fail to secure a liberal and constant share of its earnings. By the terms of the ar- rangement with the Eastern Railroad, its guaranty of thirty per cent, will be indorsed upon the bonds of the Portland and Og- densburg Eailroad. Montreal will secure new and direct con- nection by the Montreal, Chambly, and Sorel Railroad, which will supply the extension .necessary, beyond the terminus of the Portland and Ogdensburg proper, to make the new route entirely independent and self-controlling. No more important railway combination than that detailed above has been effected during the past year, and none in which the promise for future harmony and profit are equal. The new roads secure the active friendship and support of an established and prosperous line; while the Eastern, already control- ling an unbroken system of rail from Boston to Halifax, secures an independent and direct route to Montreal, Og- densburg and Ottawa, and the right to its full share of the great transportation from the west, by the shortest line from the lakes to the Atlantic. Montreal, by the arrangement, obtains a new, easy, and certain route to its winter ports, select- ing either Portland or Boston, and facilities already imperative for its enormous export business. The extent of this traffic may be understood from the fact that the increase of the ex- ports of Montreal during the last four years wei-e over two hundred per cent, greater than during the four years ending in I860.* The recent financial panic, the most severe of any in our history, has demonstrated most efi'ectively the security of the bonds of all New England railroads. Of the numerous defaults of interest, not one was made by a New England road, while the coupons of the Vermont division of the Portland and Ogdens- burg Road, though maturing in the midst of the panic, were promptly paid in gold. The comparatively small indebtedness * Except New York, her stjeam ocean tonnage clearances exceed those of any other city on this continent. k 11 per mile — $20,000 — is an element of safety in the bonds of the Portland and Ogdensburg which should not be overlooked. As will be readily seen, the annual interest obligations per mile are only $1,200, while the average earnings per mile, above OPERATING EXPENSES, of the New England railroads during the past year were $5,000, and the average earnings, per mile, of the leading East and West Trunk lines, were $9,000. An- other and not less important security to the bond-holders, exists in the fact that the casli stock subscriptions, paid in by towns and individuals along the line, amount to upwards of one mil- lion dollars. The great decline in the price of iron (nearly $20 per ton), also in labor and material, the past six months, will be fully utilized by the Portland and Ogdensburg Railroad, and an important saving in the expense of construction thereby effected. The portion already completed has been built con- siderably below the average cost of New England railways, and as the management of the road is not affected by the new alliance with other roads, the same severe economy will be practiced in completing and operating the road. The road is in successful operation for more than one-half its length. Its receipts, which have constantly increased, have demonstrated that the local traffic alone will be ample to meet interest obligations and operating expenses, independent of the immense through business which must seek the shortest line to the seaboard. Seven-eighths of the grading of the unfinished portion of the line is completed — and the construction is now being pushed so rapidly, that the new Trunk Line connecting Boston and Port- land with Montreal and the Great Lakes can be opened for business during the present year. l' r