company had already received from the governor a certificate for 230,400 acres of land, and the completion of Mr. Chamberlain's contract would entitle it in all, to 307,200 acres. For the purpose of increasing the credit of the land grant bonds, and of furthering the construction of the road to La Crosse, an additional deed of trust was subsequently executed, by which the issue of these bonds, as a lien upon the road from Portage City to La Crosse, and upon the lands belonging to the line from Portage City to the Junction (307,200 acres), should be limited to $4,000,000. By the terms of the lease to Mr. Chamberlain, the earnings of the road were first to be applied to necessary repairs of road and rolling stock; secondly, to the payment of interest on the mortgage debt and sinking fund of the Eastern division (amounting to $189,980), and the surplus to the payment of Mr. Chamberlain's judgment. By the new contract for completing the line to La Crosse, the earnings of the Western division were to be applied, first, to the payment of interest on the land grant bonds, and the surplus to the same purposes as stipulated in the lease. Mr. Chamberlain was to receive $1,500,000 in the bonds on his contract. The company were thus left without income except for purposes above specified. The directors attributed the following liabilities to the contest for the land grant. Construction bonds of 1862, charter expenses, $1,000,000; construction bonds of 1867, for purchase of St. Croix and Lake Superior Co., $1,000,000; stock, for charter expenses at Madison, $90,000; consolidation bonds, for stock in the M. & W. Co., and for " services," $210,000; notes to M. & W. Co, $150,000; capital stock, sold at 60 to 75 per cent. to meet debts of M. & W. Co., $600,000. Total, $3,050,000. No part of this sum is now included in the capital of the road.

[For further statements of cost and debt, see tabular abstracts of official reports to secretary of state.]

MILWAUKEE AND HORICON RAILROAD COMPANY.

Books of subscription were opened in Milwaukee, October 22, 1853. Directors were elected November 26, 1853. The engineer was directed to make a survey from Horicon to Stevens Point, and stock agents proceeded to the towns and villages on the line to secure additional subscriptions, and to receive in full payment of stock, mortgages on real estate, at half its value, at eight per cent. interest. Subscriptions of this class were first received to the amount of $300,000.

January 20, 1854, a contract was made with the La Crosse and Milwaukee Railroad Compary, to form a connection with the Milwaukee and Horicon Company at Horicon. The former company agreed to carry all passengers and freight of the latter company, to and from points between Milwaukee and Horicon, and north of that point, for eighty per cent. of all receipts from said passengers, freight and storage-all necessary freight and baggage cars being furnished by the Milwaukee and Horicon Company. January 25, 1854, the stockholders voted to fix the termination of the road at Berlin, and a contract was entered into for building the road to that point, ready for the roll. ing stock, except iron, chairs and spikes, for $5,400 per mile, one-half cash,

one-quarter in bonds and one-quarter in stock. December 31, 1854, about seven miles were graded, ready for ties and iron. The engineer estimated that the entire cost of completed road from Horicon to Berlin-42 mileswith equipment, under contracts made, would reach $794,800, or less than $19,000 per mile, as follows: Contract for road-bed, $226,800; iron rails, $252,000; buildings, $30,000; equipment, $100,000; chairs, spikes, frogs and switches, $16,000; right of way and fencing, $50,000; side track, two miles, $20,000; contingent expenses, $100,000. This estimate was made under the order of the directors to make the estimate high enough to cover cost in any contingency. Waupun had voted to exchange bonds with the company to the amount of $50,000, and Berlin to the amount of $100,000, and depot grounds had been secured at Horicon, Waupun, Ripon and Perlin, without cost to the company. The resources of the company were: Stock subscribed, $305,900; mortgage stock, $160,000; stock to contractors, $55,100; Berlin and Waupun bonds, $150,000; first mortgage bonds, $420,000; county and town bonds, to be voted, $270,000. Total resources, $1,361,000. Total amount expended to December 31, 1854, $31,094.35.

RIVER DIVISION.

This road was chartered May 22, 1857, under the corporate name of "Minnesota and Pacific Railroad Company." Subsequently it became the "St. Paul and Chicago Railroad Company." It runs from La Crescent, opposite La Crosse, to St. Paul- -a distance of about 128 miles. Work first commenced on this line in September, 1865; a portion of the road was opened for traffic in December, 1869, and the whole line was completed for business in 1872. In Aug, 1873, the road possessed seven water stations, one iron bridge 600 feet long, and 41 wooden bridges and trestles (aggregate length 8.118 feet). The rolling stock consisted of ten locomotives of an average weight of 60,000 lbs., one snow-plow, twelve first and second class passenger cars, four sleeping cars, ten mail, express and taggage cars, and 250 freight cars. The funded debt was $1,000,000 in 7 per cent bonds.

This road was bought by the Milwaukee and St. Paul Railway Company, January 1, 1872, all its rolling stock, equipment, appurtenances and franchises included. The price paid was $3,000,000 in the bonds of the Milwaukee and St. Paul Company, secured by a mortgage on the road from La Crescent to St, Paul, and $1,000,000 in addition were issued on the completion of the road to La Crescent, which sum of $4,000,000 is the total purchase price of the road-$31,250 per mile. (See appendix B.)

The gross earnings for the year ending August 31, 1873, were $632,765.80, and the net earnings, $248,617.18. Amount paid for interest the same year was 290,033.32. Gross earnings per mile, $4,943.48. Operating expenses per mile, $3,000.14. Net earnings per mile, $1,942.39.

The amount of aid voted this road by municipalities along the line of the road, was $404,000, and the amount received by the company was $200,000. The entire number of acres in swamp land grant from the state of Minnesota is given at 922,880.00. The entire number of acres received by the company

prior to August 31, 1872, was 81,049.35, and the number of acres yet to enure to the company was then about 842,000.

HASTINGS AND DAKOTA DIVISIONS.

This road was originally chartered February 20, 1857. Its original corporate name was the "Hastings, Minnesota River and Red River Railroad Company." The name was subsequently changed to "Hastings and Dakota Railroad Company." The line now extends from Hastings to Glencoe, a distance of 74 miles. The work of construction commenced in May, 1868. It was first opened for traffic in 1871, and was completed to Glencoe in August, 1872.

The following is an inventory of property for the year ending August 31, 1873: engine houses, 3; water stations, 6; wooden bridges (aggregate length, 427 feet), 2; other trestle work (aggregate length, 3,430 feet), 39. Rolling stock-locomotives (average weight, 40,000 lbs.), 3; snow plows, 1; first and second class passenger cars, 4; mail, express and baggage cars, 2; freight cars estimated, 75.

The capital stock issued in 1873 was $750,000. The funded debt, $1,350,000. The road was sold to the Milwaukee and St. Paul Company, July 1, 1872, which paid for the same $1,350,000 in bonds secured on the road, and $750,000 in the common stock of the Milwaukee and St. Paul Company, making a total of $2,000,000 for the purchase price of the road, a rate of about $27,000 per mile.

The gross earnings of the road for the year ending August 31, 1873, were $55,736.46, or $743.15 per mile, while the operating expenses for the year were $80,770.95, or $1,076.95 per mile.

This road was sold to the Milwaukee and St. Paul Company June 29, 1872, on the terms above specified, the sale including the following rolling stock: "five new locomotives, first class; seventy-five new box freight cars, and four new passenger cars." (See appendix, p. 118.)

MILWAUKEE AND ST. PAUL.

The Milwaukee and St. Paul Company was organized by articles of association filed with the Secretary of state May 5, 1863. The company purchased the "Milwaukee and Western" Railroad at public sale under a decree of the United States district court, in Milwaukee, June, 1863.

The Milwaukee and St. Paul company also purchased the "Milwau kee and Horicon " Railroad at public sale, under a decree of the United States district court, at Milwaukee, June 12, 1863. The road was bid in by Russell Sage and Washington Hunt for $670,000. On the same day—June 12, 1863-the western division of the La Crosse and Milwaukee Road was deliv. ered into the possession of the Milwaukee and St. Paul Company, under a decree of the United States district court in a foreclosure suit instituted by the owners of the land grant mortgage, on that portion of the La Crosse and Milwaukee road between Portage City and La Crosse. The amount due on that mortgage, as determined by the court, was On the same day

and under the same order of the court, the eastern division of the La Crosse and Milwaukee road-from Milwaukee to Portage City-was placed in the possession of the Milwaukee and St. Paul Company, for the purpose of maintaining, in behalf of the public, a continuous railroad over the whole origi nal line of road from La Crosse to Milwaukee. Under the direction of the court, the Milwaukee and St. Paul Company was required to operate the eastern division for the benefit of the creditors of that division, and to pay over to the receiver monthly all earnings from that portion of the line, except the cost of operation and necessary repairs. At this time, persons interested in the Milwaukee and St. Paul Company owned or controlled lands included in the mortgage to claimants against the eastern division to the amount of $478,000, being nearly one-half the whole amount of the mortgage on that division. Dec. 31, 1865 the Milwaukee and St. Paul Company reported that it held prior liens against the eastern division of the La Crosse and Milwaukee road, as follows: balance on "land grant mortgage;" $1,445,321, other claims, $758,187.14; interest due, $432,584.72. Total, $2,636,092.86-about $27,750 per mile. The directors claimed that these liens far exceeded the value of the property. During the ensuing year-1866-the eastern division was foreclosed in the United States district court.

The Milwaukee and St. Paul company, and all its assets, was represented January 1, 1866, by a cost set forth by the president and directors as follows: Real estate-depot grounds, $150,000; first mortgage bonds, $4,600,000; second mortgage bonds, $1,500,000; preferred stock, $2,400,000; common stock, $1,000,000. The total length of road was then 275 miles, including western division of La Crosse and Milwaukee, 105 miles; Milwaukee to Portage City via Watertown, 91; Horicon to Berlin and Omro, 53 miles; Watertown to Sun Praire, 26 miles; and the sum of cost, above stated, was $9,650,000-or 35,000 per mile.

May 1, 1866, an arrangement was agreed upon between the Milwaukee and St. Paul Company and the Milwaukee and Prairie du Chien Company, whereby the earnings of the two roads were "stocked" in proportion to the length of their respective lines. Subsequently, the same year, an arrangement was perfected by which a majority of the Prairie du Chien stock was transferred to the trustees of the Milwaukee and St. Paul Company, in exchange for the the stock of the latter company, on terms mutually beneficial and satisfactory." At the annual election of the directors of the Prairie du Chien Company the Milwaukee and St. Paul Company voted about two-thirds of the stock represented, and thus practically absorbed the whole line of the former company, with its Iowa connections, including the McGregor Western and the Minnesota Central. The former line was in operation from McGregor to Cresco, 66 miles, and the latter from Minneapolis to Owatonna, 71 miles. The road from Cresco to Owatonna, about 90 miles, necessary to complete a continuous line from Milwaukee to Minneapolis, was under contract, and the contrctors were to receive for the work $2,000,000 in mortgage bonds upon the line to be constructed, and $1,000,000 in the stock of the Milwaukee and St. Paul company-one-half preferred

and one-half common, and no money. The same year, the Milwaukee and St. Paul Company agreed to guarantee, jointly with the Winona and St. Peters Company, the first mortgage bonds of the La Crosse, Trempealeau and Prescott Company, to an amount not exceeding $1,000,000, to aid the latter com pany to build a line from La Crosse to a point opposite Winona, 28 miles, and a bridge across the Mississippi river.

January 1, 1867, the total length of finished road owned and leased by the company, was 647 miles, as follows: Milwaukee to La Crosse via Watertown, 196; Horicon to Berlin and Omro, 53; Watertown to Sun Prairie, 26; Milwaukee to Prairie du Chien, 200; Milton to Monroe, 35; McGregor to Cresco, 66; St. Paul and Minneapolis to Owatonna, 71. The material and supplies

on hand were valued at $580,329.59. The total property was represented as follows: Preferred stock, $7,370,900; common stock, $3,627,800; first mortgage bonds, $4,592,000; second ditto, $1,488,000; real estate, $135,000. Total Milwaukee and St. Paul securities issued, $17,213,700. Not included in the foregoing amount were: Prairie du Chien Company's first preferred stock, $3,204,296; second preferred do., $841,400; common do., $99,000; mortgage bonds, $390,500. Total, $4, 535, 196. On McGregor and Minnesota line, common stock, $138,500; mortgage bonds, $2,109,000, Total, $2,247,500. Adding all together, we have a total amount of stock and debt, for 647 miles of road, of $23,906,396—or $37,000 per mile. During the year 1867, the company came into permanent possession of the eastern division of the La Crosse and Milwaukee line, 95 miles, and 78 miles were added to the line between Cresco and Owatonna, making the total length of the road at the close of the year, 820 miles. No dividends were declared on either class of stock of the St. Paul Company, “all the net earnings being required to pay for new buildings and additional equipment for the road." The cost of the road from McGregor to Minneapolis, 215 miles, was placed at $9,015,000—or over $41,000 per mile, mostly in bonds and stock. At the close of the year the company was engaged in constructing no new line, except an extension from Omro to Winneconne, five miles, at an estimated cost of $70,000, or $14,000 per mile. At Winneconne the company had received valuable donations of right of way and depot grounds.

In November, 1868, the extension from Omro to Winneconne-5 mileswas completed at a cost of $82,600, making the total length of road 825 miles. December 31, 1868, the cost of the whole road, represented by total stock and debt, was stated at $32,552,341, or $39,457 per mile; the total increase for the year being $2,298,116, with an increase of five miles of road. The transfer of the Prairie du Chien line to the St. Paul company was formally completed. The elevator buildings on the lands of the company at Milwaukee were purchased for $300,000 and leased to Angus Smith & Co., for five years, "at a price which will give the company a fair profit on the purchase," the price made dependent on business done. The company also engaged during the year in constructing the line from Sun Prairie to Madison-a distance of about 12 miles; and the directors entered into contract to purchase or consol. idate with the McGregor and Sioux City Railway, from Calmar to Charles