An Act to perfect the title of the purchasers of the Pittsburgh, Fort Wayne and Chicago Railroad, and to enable them to form a Corporation, and defining the powers and duties of such Corporation. (Ap- proved February 8, 1861).. An Act to amend an Act, entitled "An Act to pro- vide for a General System of Railroad Incorporations, approved November, 5, A. D. 1849. (Approved An Act to legalize, authorize and regulate the sale of, and to perfect the title of purchasers of railroads, hereafter sold, or hereafter to be sold, by foreclosure, or other proceedings, &c. (Approved March 5, 1861)... An Act authorizing the classification of the Board of Directors of Railroad Companies. (Approved May 15, 1869.).- A law to regulate the Sale of Railroads, and the reorganization of the same. (Passed April 11, 1861.) An Act supplementary to an Act, entitled "An Act to provide for the creation and regulation of Incorpo- rated Companies in the State of Ohio, passed May 1, 1852. (Passed April 4, 1863.).. Que warranty Proceeedings.-Opinion of Supreme Taxation of Ohio Stockholders.-Opinion of R. P. CONTENTS. III. The Deeds and Mortgages of the Railway. 1. Trustees and Master Commissioners' Deed of Rail- way, etc., dated February 19, 1862. V. PAGE IV. Proceedings of Bondholders to modify the Sinking Funds and admit an increase of the Capital Stock.. 1. Propositions to Bondholders and Financial Programme 2. Minutes of Meeting of Bondholders, April 7, 1864 ... 3. Form of Contract with the Mortgage Trustees, modi- fying sinking funds and allowing an increase of 4. Circular of J. F. D. Lanier and others, Commis- Agreements and Leases relating to the Management and CLUDING THE FINAL LEASE of the whole Road and all PANY. VI. VARIOUS OTHER DOCUMENTS. 181-269 PAGE 4. Assignment of the Contract with the Grand Rapids and Indiana Railroad Company to, an assumption of PREFATORY STATEMENT. THE PURCHASING COMMITTEE of the Pittsburgh, Fort Wayne and Chicago Railroad, having watched over the interests of all concerned in that undertaking for upwards of fourteen years, either as members of the Committee named, or of the Board of Directors of the Railway Company, are satisfied that their trust in the former capacity may now be safely closed. Preparatory to doing this, they have caused the present volume to be prepared, for the purpose of furnishing to the stockholders the means of referring to the text of the various securities which represent the property, and of informing themselves accurately in respect to the corporate rights and franchises under which the railroad is operated, and the individual rights of all interested therein. Shortly after the organization of the present Company, the Committee caused a pamphlet to be made up, containing the principal documents in existence at that time, and the Board of D1rectors, also, have, from time to time, had particular papers printed and circulated, in pamphlet form, for the use of the stock and bondholders. But these pamphlets do not contain, singly or together, all the important documents affecting this Company; and they have become so scarce as practically to be inaccessible to the bondholders and stockholders at large. The Committee, on this account, determined that a new compilation was advisable. They considered also, that a book recording the documents and transactions which show the history and progress of this great road would be referred to with interest, by those who have invested in its capital or securities, or who may desire to do so hereafter,―many of whom may not be aware of the extraordinary transitions through which the enterprise has passed, or of the policy by which it has been lifted to its present prosperity. When the Purchasing Committee entered actively upon their duties, the First Mortgage Bonds, then secured on sections of the road, and which are now represented by the Firs: Mortgage Bonds of the Pittsburgh, Fort Wayne and Chicago Railway Company, were selling at about forty-five cents on the dollar, although bearing about twenty-seven per cent. of accumulated interest. The bonds issued in substitution for these dishonored securities are now sought after, by sagacious and discriminating investors, at a premium ranging from twelve to fourteen per cent. So that they may be considered equal to any investment, whatever, public or private. When the Purchasing Committee were appointed, nine different classes of bonds (including the Allegheny River Bridge Bonds), secured upon the railroad or some section thereof; two classes of bonds secured upon real estate held for depot purposes, &c., and numerous coupon bonds, were outstanding, and upon every one of these, except the Bridge Bonds, default in the payment of interest had been made. Even upon the First Mortgage Bonds about three years of overdue interest had accumulated. To this immense load of interest arrears was added a floating debt of nearly two millions of dollars, and a credit utterly ruined. To most persons it seemed hopeless to attempt saving the junior liens-the Consolidated Bonds sold at about fifteen cents upon the dollar-while the stock was regarded as entirely worthless, except, perhaps, as a means of controlling the organization. In strong contrast to this condition of things, we now see the lowest class of bonds, created in the reorganization of 1862, established as investment securities, not inferior, in the judgment of capitalists, to the vast majority of bonds upon the market secured by first mortgages, and readily commanding in the neighborhood of par. But the success of the stock investiment is still more astonishing. Here we have the case of a road pronounced hopelessly insolvent, weighed down by series upon series of mortgage bonds, and in addition to all these by an enormous floating debt; a road upon the credit of which a barrel of oil could hardly be pur- chased-no one would sell the Company anything without individual and personal security, and the Chairman himself, on many occasions, was compelled to make advances to large amounts, to raise the means actually required to keep the road in operation; a Company subject to foreclosures, to judgments, executions and sales of all kinds, in which it seemed impossible that the stock interest could survive. Nevertheless it was rescued, and in 1869 the very shares issued in substitution for the foreclosed stock be |