ILLINOIS UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN PRODUCTION NOTE University of Illinois at Urbana-Champaign Library Brittle Books Project, 2015.COPYRIGHT NOTIFICATION In Public Domain. Published prior to 1923. This digital copy was made from the printed version held by the University of Illinois at Urbana-Champaign. It was made in compliance with copyright law. Prepared for the Brittle Books Project, Main Library, University of Illinois at Urbana-Champaign by Northern Micrographics Brookhaven Bindery La Crosse, Wisconsin 2015 385+ I+3f *) 1 i :"1 FIRST MORTGAGE i SIYEN PEE CENT. GOLD BONDS OF THE jtltaca & Mm ]\ail ]\0iU' \A A FIRST AND ONLY MORTGAGE ON A COMPLETED ROAD IN SUCCESSFUL OPERATION. ....--------------- ■- o Principal and Interest Payable in Neio York City in Gold FREE OF GOVERNMENT TAX. ! Principal Due in Twenty Years from July 1st, 1870. Walker & Merriam, 9 Congress St., Boston, AGENTS- FO'R THE HALE OF SOJVf)S. •n* , y;^:| _ ■ % , > . : 'v . ~ ri:V" -FIRST MORTGAGE SETHI PES CENT. GOLD BONES OF THE (tkca & f\ail ]{o;ul |/r. A FIRST AND ONLY MORTGAGE ON A COMPLETED ROAD IN SUCCESSFUL OPERATION. Principal and Interest Payable in Neiv York Gity in Gold FREE OF GOVERNMENT TAX. Principal Due in Twenty Years from July 1st, 1870. Walker & Merriam, 9 Congress St., Boston) &GJSJYTS F07i TJZJ2 sAZ& OF SOJVDS.TIIIK Jtkp & i%ns^ailraad /rapng, OFFICERS OF THE COMPANY. President, EZRA CORNELL. Vice-President, C. L. GRANT. Secretary, L. L. T REM AN. Treasurer, GEORGE MoCHAIN. DIRECTORS. EZRA CORNELL, Founder of Cornell University, Ithaca. GEORGE W. SCHUYLER, Late State Treasurer, Do. L. L. TREMAN, Merchant^ firm of Treman Bros., Do. GEORGE McCHAIN, Merchanty firm of Andriis, McChain & Go. Do. C. L. GRANT, President Tompkins Go. Bank, Do. JOHN A. NICHOLS, Attorney at Law, Do. J. F. DIXON, Manufacturer, - Do. LEONARD TREMAN, Merchant, firm of Treman Bros., Do. JOSEPH ESTY, - Do. A. B. CORNELL, Surveyor, Port of New York, Do. WILLIAM HALSEY, Grain Dealer and Miller, Do. J. H. SELKREG, Ithaca Journal, - Do. ALEXANDER KING, Lumber Dealer, Do. DIRECTORS. J". IT. BRADLEY, Engineer. J". IT. BRADLEY, Engineer. PRINCIPAL OFFICES, ITHACA, NEW" YORK. AGENTS FOR THE SALE OF %0j\2)S, WALKER & MERRIAM, 0 COiYOKESS STREET, BOSTON.Ithaca & Athens Railroad Company, The Ithaca and Athens Railroad Company was organ- ized as the Ithaca and Towanda Railroad Company, under the general railroad laws of the State of New York, the name of the Company being subsequently altered to its present title on account of the change of the southern terminus of the road from Towanda to Athens. The road runs from Ithaca, New York, to a junction with the Lehigh Valley Railroad, near Athens, Pa., a dis- tance of thirty-six miles, affording the shortest means of communication between the principal anthracite and bitu- minous coal fields of Pennsylvania, and water transporta- tion at Ithaca to all points east and west, and to the great Lakes, via Cayuga Lake and the Erie Canal. Being practically a continuation of several heavy coal carrying roads, whose freight naturally seeks the cheapest mode of transportation to the points of delivery, the southern connections of this line cannot fail to contin- uously supply it with a fruitful and constantly increasing source of revenue; and that this is unquestionably the cheapest route for the distribution of coal to the principal6 towns on the lakes, in Northern and Central New York, and the West, will be demonstrated by figures presented herewith, gathered from official sources. The connections of the road are, at Athens, with the Lehigh Valley Railroad and its numerous connections to the anthracite coal fields of the Wilkesbarre, Pittston and Shamokin regions; to Easton, Pa., and thence to New York, Philadelphia, and all other important points. With the Sullivan and Erie Railroad at Towanda, to the coal lands of Sullivan county, Pa. With the Barclay Railroad to the Barclay bituminous mines, all of which will prove to be inexhaustible feeders to the traffic of the line. The tonnage of the Lehigh Yalley Railroad for Nohthebn Delivery in 1870, was........................... 276,151 tons. The production of the Barclay Mines in 1870, was....... 273,335 " The Sullivan and Erie Company will mine this year...... 100,000 " For the products of the mines of the two latter Com- panies, this route is the natural outlet, as well as for those in the Lehigh Yalley seeking an outlet to the North and West. At Waverley the road is crossed by the Erie Railway. At Ithaca, water transportation is reached, and thence via Cayuga Lake to the Erie Canal at Montezuma, is a distance of forty-six miles. From this point without trans- shipment after leaving Ithaca, coal and other freight can be transported on the largest class of boats to all points7 East and West on the canal and lakes; the canal also serving as a feeder for freight destined south, which of itself is an important item in the business of the road, affording as this line does, the cheapest route for the transportation of grain, flour, etc., with which commodities the mining districts are mostly supplied from the Northwest. The connections via the North Pennsylvania Railroad, give a through route to Philadelphia, by which produce from the lakes can be delivered at much cheaper rates than by any other channel of communication. At Ithaca, the road will connect with a road from thence to Geneva, the construction of which is now contemplated, also with the Ithaca and Cortland Railroad now in opera- tion. There are also two projected roads terminating at Ithaca, which will furnish additional northerly outlets for the 'business of the road; one to run along the east shore of Cayuga Lake to the New York Central Railroad and Erie Canal; the other to pass through the centre of Tomp- kins, Seneca and Wayne Counties to Sodus Bay on Lake Ontario. The only other route from the coal mines to the Erie Canal is via Watkins, at the head of Seneca Lake, from which point to the canal junction at Montezuma, the distance is eighteen miles greater than from Ithaca. Watkins being five miles further from Athens than is Ithaca, gives a total of twenty-three miles in favor of the Ithaca route. The road traverses a rich and productive section of country, most of it in a high state of cultivation, and yielding large crops of grain, etc. At various points in8 the vicinity of the line are extensive bodies of fine hem- lock and hardwood timber, and numerous saw-mills, which will furnish to the local traffic an important item in the article of lumber. Passing through a natural valley, the entire distance, there is no outlet from the coal regions that will compare with this as to easy grades, and consequent economy in operating. With the exception of about half a mile, where the grade is about twenty feet, the maximum grade against trade along the whole line, is but fourteen feet to the mile. Ithaca is a prosperous town at the head of Cayuga Lake, having a population of 10,000 inhabitants. Its manu- facturing interests are already of an important character and possessing a water power, which, when fully utilized, will hardly be surpassed by that of any other town in the State, surrounded by a rich agricultural country, and the site of the famous Cornell University, the projected rail- road facilities will, ere long, elevate Ithaca to the foremost rank of interior towns. Within the corporate limits, in addition to their tracks and necessary sidings, the Company owns seventy-eight acres of land, having a water frontage of over 3,000 feet on the canal and Cayuga Lake. On this property a tier of water basins 500 feet long and sixty feet wide has been excavated. These have substantial wharves on which are erected extensive coal pockets, by means of which the coal; is transferred from cars to boats at slight cost, and afford j ample storage. j The principal source of revenue is from the transporta-)9 tion of coal. Particular attention is, therefore, called to the following statement of the comparative cost of trans- portation by this and other routes, showing the difference in favor of this line: HARD AND SOFT COAL. ]. Athens to Syracuse, via Southern Central and New York Cen- tral Kailroads.................. ... $2 26 via Ithaca and Athens Railroad, Lake and Canal.............................. 1 53 Difference in favor of Ithaca route.................... $0 73 2. Athens to Albany, via Erie and Albany and Susquehanna Railroads.......................... $3 64 via Ithaca and Athens Railroad, Lake and Canal............................. 2 48 Difference in favor of Ithaca route.................... $1 16 3. Athens to Buffalo, via Eric Railroad...................... $3 44 via Ithaca and Athens Railroad, Lake and Canal.............................. 2 03 Difference in favor of the Ithaca route................ $1 41 4. Athens to Rochester, via Erie Railroad.................... $2 68 via Ithaca and Athens Railroad, Lake and Canal........................ 178 Difference in favor of Ithaca route.........................$0 0910 HARD COAL. 5. WlLKESBARRE TO OSWEGO, via Scranton, Lanesboro' and Erie, and Syracuse and Bingbampton Railroads..................... $4 24 via Lehigh Valley and Ithaca and Athens Railroad, Lake and Canal.. 3 80 Difference in favor of Ithaca route..................... $0 44 6. WlLKESBARRE TO BUFFALO, via Scranton and Erie Railroad.... 15 72 via Lehigh Valley and Ithaca and Athens Kailroads, Lake & Canal. 4 05 Difference in favor of Ithaca route................... $1 67 7. PlTTSTON TO UtICA, via Scranton, Binghamton and Syracuse..... $4 08 via Lehigh Valley and Ithaca and Athens Railroads, Lake and Canal.............. 3 85 Difference in favor of Ithaca route.................. . . $0 23 SHAMOKIN AND PlTTSTON (Hard Coal) Compared. 8. Shamokin to junction of Erie and Seneca Canals at Montezuma, via Northern Central Railroad, Watkins and Seneca Lake..... $3 90 Pittston to junction of Erie and Seneca Canals at Montezuma, via Lehigh Valley, Ithaca and Athens Railroad and Cayuga Lake.. 3 00 Difference in favor of Pittston Coal and Ithaca route..... $0 9011 i 9. ShaMokin to Buffalo, \ via Northern Central and New York | Central Railroads.................. $6 10 Pittston to Buffalo, via Lehigh Yalley and Ithaca and Athens < Railroads, Lake and Canal............ 3 85 Difference in favor of Pittston and Ithaca route......... $2 25 SULLIVAN AND SCRANTON (Hard Coal) Compared. ; 10* 0cranton to syracuse, i via Del., L. & Western, and Syracuse and Binghamton Bailroads........ $2 84 Sullivan to Syracuse, via Lehigh Yalley and Ithaca & Athens Railroads, Lake and Canal.......... 2 35 I Difference in favor of Ithaca route and Sullivan Coal..... $0 49 11. SCRANTON TO OSWEGO, via Del., L. & Western, and Syracuse | and Binghamton Railroads......... $3 56 jSuLLITAN to OsWEGO, S via Lehigh Yalley and Ithaca and Athens j Railroads, Lake and Canal............ 2 60 Difference in favor of Ithaca route and Sullivan Coal..... $0 96 j It may be remarked here that the semi-anthracite coal Ifrom the Sullivan mines is pronounced equal to the best jhard coal for general use, and superior for the grate and tthe production of steam. The following comparison will show that the Sullivan (boal can compete successfully with that from Scranton, not (pnly to the above places, but to points more distant on the £Crie Canal:12 ScRANTON TO ALBANY, via Del., L. and Western, and Albany and j Susquehanna Railroads..............................$4 06 i Sullivan to Albany, i via Lehigh Valley, and Ithaca and Athens j Railroads, Lake and Canal............ 3 30; --j Difference in favor of Sullivan Coal and Ithaca route..... $0 76 1 SOFT COAL. (Blossburg and Barclay Coal Compared.) 12. Blossburg to junction of Erie and Seneca Canals at Montezuma, via Northern Central Railr ad and Seneca Lake............. $2 24 Barclay to Montezuma, via Barclay, Lehigh Valley, Ithaca and Athens Railroads, and Cayuga Lake $1 82 Difference in favor of Barclay Coal and Ithaca route...... $0 42 which will hold good to all points on the Erie Canal, East and West. 13. Blossburg to Rochester, via Corning and Erie Railroad....... $2 70 Barclay to Rochester, via Ithaca, Lake and Canal........... 2 42 Difference in favor of Barclay Coal and Ithaca route...... $0 28 14. Blossburg to Buffalo, via Corning and Erie Railroad........ $3 46 Barclay to Buffalo, via Ithaca, Lake and Canal............. 2 67 Difference in favor of Barclay Coal and Ithaca route...... $0 79 BARCLAY COAL. 15. Barclay to Utica, via Southern Central and New York Central Railroads........................... $3 96 via Ithaca, Lake and Canal................ 2 67 Difference in favor of Ithaca route.................... $1 2913 16. Barclay to Syracuse, via Southern Central and New York Cen- tral Railroads..................... via Ithaca, Lake and Canal............ $2 90 2 17 Difference in favor of Ithaca route 10 73 Among the items of general freight which may be ex- pected to find their way over this route, the article of grain merits some mention. As before stated, the sections of Pennsylvania reached by the connections of this road, are in a great measure supplied from the Northwest. The freight on grain from Buffalo to Waver- ley is 20 cents per 100 lbs., or per ton... $4 00 From Buffalo to Ithaca, per canal.........$1 33 From Ithaca to Athens via I. & A. R..R.... 1 60 2 93 Making a difference of..............................$1 07 per ton in favor of the Ithaca route, besides avoiding the expense and waste attendant on changing from broad to narrow gauge cars. From Union Springs on Cayuga Lake, there are annually shipped south, about 10,000 tons of plaster, most of which has heretofore found a circuitous outlet by Seneca Lake. The completion of this road affords a direct route, and the largest portion of the plaster will now go this way. Large quantities of Syracuse salt, Canada, Lake Superior and Oneida County iron ore are used in the mining districts and the interior of Pennsylvania, the transportation of which will be largely absorbed by this route, and it is believed that the lower rate of freight that it is enabled to offer will induce a considerable increase in the shipment of these articles. These remarks will also apply to Canada14 pine lumber and live stock raised in northern New York, from which, and from miscellaneous and express freight the Company may fairly calculate to receive a large reve- nue. From passenger traffic a well-paying income may safely be relied on. In addition to the by no means inconsider- able local and business travel that the superior facilities of the road commands, the natural beauty of the scenery around Ithaca and on Cayuga Lake will doubtless induce very many to select this route to reach the New York Central Road from Pennsylvania and other sections. The entire line is completed and now in operation. The road has been constructed with great economy, but very substantially; the iron is of the highest grade of American manufacture, and the equipment of the first order of work- manship and material. The Board of Directors of the Company is composed of some of the principal business men of Ithaca, whose names are a sufficient guarantee for the faithful and able manage- ment of the affairs of the Company, and for the honest exe- cution of their duties ; and it may not be out of place to state that not one of these gentlemen has received a salary or other remuneration for his services, their interest in the enterprise and the prosperity of the town of Ithaca, having been sufficient inducement for them to devote such of their time to the carrying out of the project as has been necessary. The fact of the town of Ithaca having sub- scribed to one-half of the capital stock of the Company, is an evidence of the confidence placed by the community in the enterprise and its management. The capital stock of the Company is $600,000, of which15 $300,000 has been subscribed by the town of Ithaca, and the balance by individuals there and along the line! I To iron and equip the road, and to pay for property purchased for wharves at Ithaca, and complete the contem- plated improvements at that point, the Company has issued bonds of $100, $500, and $1,000 each, to the amount of $600,000; secured by a first and only mortgage to Hon. Josiah B. Williams, of Ithaca, Trustee, on the whole road and equipment. The bonds run twenty years, and bear interest at the rate of seven per cent, per annum, payable semi-annually on the first days of July and January of each year, principal and interest payable in gold coin in the City of New York, free of government tax. The mortgage provides for a sinking fund to be set apart out of the earnings of the road, for the payment of the bonds at maturity. The following is an estimate of the earnings of the Com- pany for the first year: 200,000 Tons Coal, carried 36 miles at 2c., 72c. per ton.....$144,000 00 5,000,000 Feet of Lumber, at $2........................................10,000 00 3,000,000 Lath........................................................................720 00 Miscellaneous Freight, including Grain going South................30,000 00 Return Freight, Miscellaneous................ ..................8,000 00 Plaster.... ...... ....................................................................5,000 00 Salt and Lime............................................2,000 00 Cattle and Sheep............................................3,000 00 Express .......................................................................4,000 00 Passengers and Mails..................................................................18,000 00 $224,720 00 Operating Expenses, 55 per cent........$123,596 00 Interest on Bonds, 7 per cent, on $600,000 42,000 00 Premium on Gold, 10 per cent.......... 4,200 00 169,796 00 Net earnings over all..............$54,924 0016 From information and assurances received from connect- ing coal roads, it is believed that the foregoing is a very low estimate of the earnings of the road, and that the actual result of the first year's operations will be much more favorable than these figures indicate. The bonds of the Company are now offered for sale, and are confidently recommended as one of the safest securities ever placed on the market, being secured by a first and only mortgage on property costing, with the most econo- mical outlay, double the amount of the whole issue. The high social and financial standing of the managers of the road, the certainty of an ample revenue from the day of its completion, and a constantly increasing business, preclude the possibility of any failure on the part of the Company to pay the interest on the bonds or their princi- pal at maturity. Any further information desired will be furnished on application to WALKER & MERRIAM, 9 CONGRESS STREET, BOSTON, Agent for the Sale of the Bonds. (copy of mortgage.) This indenture, made this first day of July, one thousand eight hund- red and seventy, between the Ithaca and Athens Railroad Company, of the first part, and Josiah B. Williams, of Ithaca, in the county of Tompkins, and State of New York, of the second part, witnesseth, whereas the said Ithaca and Athens Railroad Company, in pursuance of the power and authority conferred upon it by the act of the Legislature of the State of New York, entitled " An act to authoiize the formation of Railroad Cor- poration-', and to regulate the same," passed April 2d, 1850, and the several subsequent acts amending the same, are now engaged in construct- ing a railroad from the village of Ithaca, in the county of Tompkins afore-17 said, through the counties of Tompkins, Chemung, and Tioga, to the south line of the State of New York, in the Town of Barton and county of Tioga; and whereas the said Company deem it necessary, for completing, finish- ing and operating its said Railroad, to borrow the money required to en- able it so to do, and has resolved, in pursuance of the power conferred by said acts, to borrow, not to exceed the sum of six hundred thousand dollars, to be applied to the completing, finishing and operating its said railroad; and, in order to secure the payment thereof, to issue and dispose of its bonds, not exceeding such aggregate amount, viz: three hundred and forty- six bonds of one thousand dollars each, four hundred and fifteen of five hundred dollars each, and four hundred and sixty five of one hundred dol- lars each, payable at its agency in the city of New York on the first day of July, one thousand eight hundred and ninety, with interest thereon, payable semi-annually at the agency of said Company, in said city of New York, on presentation and delivery of the coupons or interest-warrants an- nexed to said bonds, which bonds are numbered from one to twelve hund- red and twenty-six consecutively, and both inclusive, and bear even date herewith; and each bears thereon a certificate duly signed by the said party of the second part, and to mortgage its corporate property and fran- chise to secure the payment thereof; and, whereas it was further resolved by said Company that a sinking fund of one per cent, per annum upon the whole amount of said bonds which shall be issued by said Company should be set apart out of the earnings and income of said Company, after first paying the expense of running and maintaining its road and the interest upon the outstanding bonds, the same to be invested exclusively in said bonds in case the same can be purchased at par, or under; and, when not thus to be obtained, then to be invested in the stocks of the United States, or of the State of New York, which have been, or shall be issued according to law in the discretion of said Company. Now, therefore, this indenture further witnesseth that the said Ithaca and Athens Railroad Company, the better to secure the payment of the principal and interest of said bonds, and in consideration of one dollar to it in hand, paid by the said party of the second part, the receipt of which is hereby confessed and acknowledged, has granted, conveyed, assigned, transferred and set over, and hereby does grant, bargain, assign, transfer and set over to the said party of the second part, and his successors in the trust hereby created, its said railroad, as well that part thereof already constructed, as also that part thereof in pro- cess of construction, and those parts thereof yet to be constructed, its18 franchises and all its rolling stock, and appurtenances, as well that now be- longing to or owned by said Company, as also all that shall be hereafter acquired or owned by it. To have and to hold the said premises, pro- perty, franchises and appurtenances heieinbefore granted, conveyed, trans- ferred and set over to him the said party of the second part, and his suc- cessor and his successors in said tiust, in trust for the person and persons, bodies politic or corporate, who shall become holders of the said bonds about to be issued, or any of them, subject to the terms and stipu- lations of the said bonds and to the provisions of the aforesaid " act to authorize the formation of railroad corporations and to regulate the same," and the subsequent acts amendatory thereof, and subject also to the possession, control and management of the directors of said Company, so long as said company shall well and truly perform al^ and singular the stipulations and covenants in said bonds contained, and the covenants and provisions of this indenture; and the said Company, for itself, its successors and assigns, does hereby covenant and agree to and with the said party of the second part, as such trustee as aforesaid, and his successor and successors, that all the money which shall be received upon said bonds shall be applied in good faith to the construction and completion of said Railroad and its appurtenances, and in operating the same, and purchasing the necessary rolling stock for operating the same • and, further, that it will make, execute, and duly acknowledge and deliver to the said party of the second part, or to his successor or successors in said trust, all and singular such farther assurances and instruments as shall from time to time be or become necessary, fully to carry into effect the true in- tent and meaning of this indenture, and as the said Trustee, his successor or successors, shall reasonably desire and require for that purpose, and par- ticularly to make such further writings or written instruments as shall from time to time or at any time give to said Trustee, his successors and succes- sors, power and authority at law to take possession of and to sell and con- vey such and so much of the property hereby intended to be mortgaged as the exigency of the case may require, and as shall be necessary to en- nable said Trustee fully to carry out the intention of the parties hereto without the tedious and expensive remedy of a resort to courts of equity ; and said party of the first part hereby further covenants and agrees to and with the said party of the second part, as such Trustee as aforesaid, that a sinking fund of one per cent, per annum upon the whole amount of said bonds which shall be issued by said Company shall be set ap&rt out of the19 earnings and income of said Company after first paying the expenses of running and maintaining its railroad and the interest upon the outstanding bonds, the same and the accumulations thereof to he invested exclusively in the purchase of said bonds in case the same can be purchased at par or under, and when not thus to be obtained, then to be invested in the stocks of the United States, or of the State of New York, or in the bonds of some or any of the cities of said State which have been or shall be issued accord- ing to law, in the discretion c-f said Company, and it is hereby expressly agreed and declared, and this instiument is delivered upon the express trust and understanding that, in case the said Company shall at any time, for the space of three months after demand therefor be in default in the payment either of principal or interest of said bonds, and, upon request in writing of any of the holders of said bonds on which interest or principal shall not be duly paid as aforesaid, said Trustee may take actual possession of said Railroad, and of all and singular the said mortgaged property, and through the agency of the persons whom he shall from time to time appoint for that purpose, manage and control the same, and collect and receive the income and profits thereof, and of all of said mortgaged property for the purposes of the security and trust as hereinafter declared, and may sell and dispose of at public auction, giving reasonable notice of the time and place of such sale of the said road, its appurtenances and other mortgaged pro- perty, and all benefit and equity of redemption of the said Company there- on, with the benefit of the franchise and subject to the conditions thereof; and in case it shall be deemed best by said Trustee that only a portion of said property, not including said Railroad and franchise, shall be sold suffi- cient to satisfy the moneys so due and remaining unpaid, then, in that case, said Trustee shall be at liberty to sell only such sufficient portion for that purpose. But in no case shall said Railroad be sold in portions. And the said party of the first part hereby constitutes and appoints the said party of the second part, his successor and successors, its attorney for the purpose of taking possession of and selling and conveying said Railroad franchise and appurtenances, and all other the said mortgaged property of said Company, from time to time, as the same shall become necessary, fully to carry out the provisions of this instrument; and full power and authority is hereby given to said attorney to make and deliver to the purchaser or purchasers of sa