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CIHM/ICMH
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1980

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mmm

T H K

^^fP

Iticap and pnada Soittliern

RAILWAY COMPANY.

ff*«!!^^l^ff''lP"

".H»W^" 'I II »! I II .VW •^nn-'-p—^ ■

E.'

THE

■

RAILWAY COMPANY.

— «- m — ♦-

PROSPECTUS,

AND

OTHER. HDOOUIiyCEIsrTS.

New York :

E. WELLS SACKETT & BRO., STATIONERS, AND JOB & LAW PRINTERS,

Corner William and Pine Streets.

1872.

SIC

Mil

GEO

PPPICERS OP THE pOMPANY.

PRKSIDKNT.

MILTON COURTRIGHT.

VICH3-PRK8IDKNT,

J. W. CONVERSE.

DIRECTORS,

SIDNEY DILLON,
J. W. CONVERSE,
KENYON COX,
MILTON COURTRIGHT,

JOHN F. TRACY.

DANIEL DREW,
WM. L SCOTT,
GEO. GOSS,
CHESTER WARNER.

SKCRETARY,

ALLYN COX.

, TREA^STTRERS,

CHESTER WARNER, Chicago. III.
KENYON COX, New York.

CHIEF EN-G-INEER,

ROBERT L HARRIS.

CO^rSULTINGf ENGIN -R,

F. N. FINNEY.

SOLICITORS,

GEO.C.CAMPBELL,ofChicago;Hon.CHAS. I. WALKER, Detroit
CHARLES TRACY. New York City.

PROSPECTUS

OP THE

Chicago and Canada Southern

RAILWAY COMPANY.

The Chicago and Canada Southern Railway is
"the closing link between Chicago and the western
terminus of the Canada Southern Railway, on the De-
troit River (which latter road will be completed by-
January 1st ensuing), and is the most direct and level
line attainable between these points.

It is 260 miles long, with a branch to Toledo 36
miles in length, diverging from the main line 190 miles
east of Chicago. The distance from the eastern ter-
minus of the main line to Detroit by the Toledo,
Canada Southern and Detroit Railway is 10 miles,
making the distance from Chicago to Toledo 226, and
to Detroit 266 miles.

This Railway, the Canada Southern, and branches,
are substantially one undertaking, under the same
general management and control.

The principal objective points are Buffalo, Chicago,
Toledo and Detroit. It will therefore be a connecting
link between the great systems of railways diverging
from these important commercial centres, which can
now supply to it a traffic equal to its utmost capacity.

To connect these important systems there arc now but
two existing roads, viz. : the Lake Shore and Micliigan
Southern on the south, along the south shore of Lake
Erie, and the Great Western and Michigan Central
on the north.

The Capital of the Chicago and Canada
Southern and the Canada Southern
Railways will be . . .

That of the Great Western and kichigan
Central is

And that of the Lake Shore and Michgan
Southern is ....

The distance by the Chicago and Canada
Southern and Canada Southern Rail-
ways from Chicago to the west end of
the International Bridge at Buffalo is

By the Michigan Central and Great West-
ern Loop Line (their shortest line)

By the Lake Shore and Michigan South-
ern (their shortest line) to Buffalo

$30,000,000
$55,000,000

$75,000,000

482 miles.

510 miles.

524 miles.

The maximum grade of the Chicago and Canada
Southern, like that of the Canada Southern Railway,
is 15 feet to the mile, with an alignment equally
favorable.

William J. McAlpine, Esq., in his report as Con-
sulting Engineer of the Canada Southern Railway,
after alluding to the advantages in distance which
these lines had in their favor to the principal objective
points, says :

" There is, however, a more important question to be
" considered between your line and that of any existing

"ei
"tal

"tri

1 1 ,

" one, or any that can be built, being that of its superior
" advantages of grades and alignment.

" It is somewhat diflBcuItto stdte the moneyed value
" of the latter, as in it is involved the questions of safety,
" speed and operating expenses.

" In regard to grades, the rule may be assumed, as
" sufficiently accurate for this comparison, that one of
" twenty feet j)er 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-
" dred tons of cargo, on the average of the year round
" (ast(mnage is presented of different proportionsof bulk
"and weight and with the different conditions of the
" rail), on a grade of 15 feet per mile. It is quite true
" that such engines often haul twice this load, but expe-
•' rienced railway men will doubtless consider the above
" as fair, in its practical application to the subject under
" discussion.

" It will be noticed, that in the following calculations,
' the average load of an engine of 30 tons, has been
" taken at 300 tons on a ruling grade of 15 feet per
" mile, lor the mixed traffic of a railway. If, however,
' ' v/e 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 Grreat 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 liue,fwill encounter grades of 25 feet on its west-

" ern half, and those of 65 feet on the eastern half, and
" on the suggested Glencoe " Loop," grades going cast,
" of 25 feet for the western half, and those of 35 feet for
" the eastern half.

" The controllinggradesofall, except one of the work-
"ing divisions of the Lake Shore Railway proper (to
" Toledo), are 35 feet, and those of the Michigan South-
" ern and Central are from 36 to 45 feet to the mile.

" Applying the rule before stated, to these several
"lines, it will be found that this line will have the
" following percentages, in its favor, over the above-
" mentioned lines in addition to those of distance, viz. :
" as against the existing line of the Great Western,
•'of 66 per cent., of the Michigan Southern, of 5'^ ^ "
" cent. ; or, as applied to the suggested " Loo; , p^^ 1
' to the Lake Shore, of 40 per cent.

" When we combine all of these advantages of ^ /ur
" line, we find in its favor, 1st : That the saving in the
" length of miles of construction is, from 33 to 55 miles
" in length over its competitors. 2d : That the saving
"in the cost of maintaining and operating in regard 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 be taken as shown by the same ratios. That is,
" that practically, the cost of all the expenses of run-
" ning a train are nearly in the direct ratio of its
" speed.

"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
to secure the lowest grades for the whole line be-
tween Chicago and Lake Erie. 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, flatten down to the low table lands in
western New York, and allows the vast volume of
the water from the upper Lakes, to flow past its
northern boundary to the Atlantic. Penetrating
this ))lateau from the eastward, is the Mohawk
River, which virtually extends the Lake Erie pla-
teau, on nearly a 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 heav-
iest traflic, and gravity becomes an important assist-
ance to the railway tonnage in that direction, and
therein differs from the lines of artificial water com-
munication 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 does upon a
level.

" A line of railway extending from Buffalo to the
Hudson River, with grades which will not exceed
16 feet, is attainable. Such a line need not diverge
from existing or projected lines, except in particular
places.

" It then appears, that a continuous line of railway
between Chicago and New York, running over this
line, may be made, upon which the maxima grades
will not exceed 15 feet per mile.
" This whole line and alterations will be built at an
early day, and its effect upon the through traffic will
form an epoch in the history of American rail-
ways."

The line of this road passes through a well settled
country, similar io and equally as productive as that
through which the Michigan Southern or Central
passes, and will therefore have the same advantages
in local traffic.

As applicable to the through traffic, the following
extracts are taken from the prospectus of the Canada
Southern Railway Company :

" The best idea of the through business which this
railway may expect, can be derived from a statement
of the immense area, population, wealth, resources
and progress of the States lying along and west of its
western terminus. These States are Michigan, In-
diana, Illinois, Missouri, Kansas, Nebraska, Iowa,
Wisconsin and Minnesota. They contain an area of
500,798 square miles, and had a population in 1870 of

10,280,371. The following statement will show the
area of each State, the population, and the nnraber of
miles of railway in each, in 1860 and 1870:

Area. Population, Population, Miles of Miles of

Square Miles. 1800. 1870. RR. 1800. R.R. 1870.

Michigan 56,451 749,113 1,184,296 779 1,733

Indiana 33,809 1,350,428 1,673,046 2,163 3,177

lUinois 55,400 1,711,951 2,539,678 2,799 4,823

Missouri 65,350 1,182,012 1,715,000 817 2,040

Kansas 81,310 107,206 362,871 1,401

Nebraska 75,995 28,841 123,000 578

Iowa 55,036 694,913 1,191,802 655 2,550

Minnesota 83,521 172,023 435,511 972

Wisconsin 53,921 775,881 1,0. .,167 905 1,350

560,793 6,772,368 10,280,371 8,118 18,624

The population of these States increased in the
period of 10 years, 3,508,003, over 50 per cent. The
railroad mileage in the same time increased 10,506
miles, or nearly 130 per cent. At a similar rate of
increase, these States will have in ten years from this
time, 15,000,000 inhabitants, and 40,000 miles of rail-
way. But this is by no means all. New States are
speedily forming out of Territories already containing
large populations, while the railroads across the con-
tinent will bring to all the eastern lines an immense
traffic from the interior and from the Pacific Coast.
With that of the Territories, the increase of population
in the West cannot be less than 600,000 annually.
The yearly increase alone is adequate to the sup-
port of a lirst-class road to bear their products to
market.

The States named in the preceding table produced
in 1870 400,000,000 bushels of corn, and 150,000,000
bushels of wheat. The tonnage of this vast quantity
exceeds 18,000,000 tons. But this tonnage, great as

it is, is but II titho of what will be [)r()(luccd with tlieir
increased |)0[)ulation, and under the stimulus oC cheap
trans[)()rtation. The transportation of stock, and ani-
mal food of various kinds, constitutes a larger source
of income of our through lines than that of grain.
This kind of traffic is increasing much more rapidly
than any other. The Eastern States are becoming
more dependent every year upon the far West for
their supply of animal food. Stock can be raised and
transported at a profit far bej^ond the })rofitable limit
for grains on account of the greater value of the
former.

But the raj)id increase of the tonnage of our rail-
roads is much more wonderful than the increase in
population.

The tonnage in 1860 of the live great roads coming
into Chicago from the West ; the Chicago and Nortli
Western, the Chicago and Uock Island, the Chicago,
Burlington and Quincy, the Chicago and Alton, and
the Illinois Central, amounted to 0,767,200 tons. In
1860 the tonnage of these roads did not exceed 1,500,-
000. The increase in 10 years e(]ualed 5,207,200, or
350 per cent., or an average increase of 35 per cent.,
yearly.

The tonnage of the three great lines from the West
terminating on the sea-board — the New York Central,
the Erie, and the Pennsylvania Railroads, increased
from 1850 to 1800, a period of ten years, from
2,873,631 tons to 12,007.080 tons, or an average of
35 per cent., annuall3\ While this percentage cannot
be maintained, the actual annual increase will be much
greater.

The following statement will show the tonnage of

the five roads entering Chicago from the West, for a
period of five years, ending with 1869 :

Illinois Cen-
tral

Chicago and
Alton.

Chicago, Rock

iHland and

Pacific.

Chicigo, Buf-

lingii.ii and

Quincy.

Chicago and

N)rth West

cm.

1865

1:022,024

386,197

441,510

80!»,674

956,581

18f)(i

l,03t,!)4f>

511,012

472,557

737,511

1,137,515

1807

1,153,175

636,360

459,986

821,883

1,726,919

1868

1,439,675

915,682

654,435

937,489

1,982,429

1869

1,601,972

1,076,678

846,887

1,029, 746

2,211,826

Such rates of increase show how iimch more rapidly
the products and wealth of the country increase than
its population. Such evidence as this, drawn from
the reports of railroad companies, show the absolute
necessity of constantly increased provision for trans-
porting the products of the interior to the sea-board,
and that no provision that is likely to be made will
equal the demand.

While the progress of railroads has been so rapid
in the West, no great independent outlets have been
opened for them to the Eastern market during the last
ten years.

Mr. E. H. Walker, Statistician for the New York
Produce Exchange, has kindly furnished the annexed
interesting official statement, showing the average an-
nual cost of transi)ortation of wheat and corn by water,
iVom Chicago to New York, 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 for the year 1870,
was 22 cents per bushel ; corn being carried at about
the same rate for the same weight.

The toll on the Erie Canal for the last year was 3
cents per bushel, with freight exceptionally low. If
the Erie Canal is ever made free from toll, it will only

reduce the cost of transportation by water to this ex-
tent. This is the only reduction possible, short of an
enlargement ot the canal.

The practice of purchasing grain at the stations
upon the road west of Chicago is increasing among
grain dealers. This saves all charges at Chicago and
Buffalo. These transfers 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 condition 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, (925 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, . . . 408

Total,

This includes the cost of working and
maintaining the railway and e(iuipment,
together with every other expense, ex-
cept interest on capital.

14,000 bushels of wheat at 17 cents
per bushel, is . . . . $2,380

100 tons mixed freight back,
at 75 cents per hundred, is . . 1,500

$2,318

3,880

Leaving a net profit. of ....
or over 40 per cent, upon the gross earnings.

$1,502

.880

.,5r)2

A 32-ton locomotive will transport over such a road
60 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 communi-
cation, and it is believed, cheaper than by any
improved, or enlarged navigation practicable.

In connection with tb* transportation of grain
through the St. Lawrence, which is now of considera-
ble magnitude and rapidly increasing, the line to
Hamilton becomes particularly important. The dis-
tance from Chicago to Lake Ontario, by water, is not
only long and circuitous, but involves passing through
the Welland Canal, the locks of which are only 26 5
by 150 feet in the chamber. The locks between Lake
Ontario and Montreal are 45 by 200 feet, the latter
admitting vessels or barges of very much greater ca-
pacity — 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 [)urpose. Taking grain by all rail
direct to Hamilton, this lightering and expense of

passing tlio Wolland Canal will be avoided, and it can
there either be put into a class of .ships safe for a sea
voyage, or into large barges, tor either Oswego, Mon-
treal or (Quebec, at which two latter places it can be
sent abroad by a still larger class cf shipn. ^'xrain ciin
be taken from Chicago to the head of Lake Ontario at
Hamilton, 450 miles, and transferred into vessels or
barges throngh an elevator, for eightcents per bushel.
Airing grain occasionally, through an elevator, on a
long voyage, is worth to the grain all it costs. The
transportation of grain b}^ this route will doubtless
become important, and add largely to the traffic of our
railway.

The receipts of the Lake Shore and Michigan South-
ern Railway in 1871 were $14,800,000, and but for
the want of capacity to do the business offered, would
have been greater. If more facilities are necessary
now to relieve this blockade, they will be imperatively
necessary, upon the completion of the additional rail-
ways, now in course of construction from the eastern
and western termini of this line of railwav.

The gross earnings of the Great West-
ern and Michigan Central last year
were, in round numbers,

The Lake Shore and Michigan South-
ern, .... . .

5i^<j,300,000
$14,800,000

Total, .... $24,100,000
The gross earnings of these roads this
year are estimated at, . . . $28,300,000

Increase,

$4,200,000

Fil

This increase of business, the growth of a single

,000

),000
I), 000

0,000

year, would alone be sufficieut, considering the small
capital of the Chicago and Canada Southern and tho
Canada Southern Railways and the cheapness with
which they can be worked, to produce a net revenue
almost sufficient to pay the interest on the whole cap-
ital of these two companies.

The low grades and perfect alignment of this Rail-
way, like that of the Canada Southern, will admit
transportation of passengers at the highest speed, and
under the conditions of the most perfect safety. It
will have the same economical advantages in the trans-
portation of passengers as it will have in that of
freight.

It will start off with the advantages of distance,
grades and alignment, largely in its favor, and with
Steel Rail and new equipment and appliances of the
most approved modern kind. With its ability there-
fore for cheap transportation, and all its other advan-
tages combined, it is difficult to estimate the traffic
which must necessarily pass over this and the Canada
Southern Railway, the most favorable link in that line
of transit, over which so important a portion of the
business of the continent naturally passes.

ASSETS.

Capital stock authorized, . . . $10,000,000
First mortgage, 7 per cent, sinking fund

bonds, 8,000,000

$18,000,000

COST.

The cost of the Railway equipment and
appurtenances complete, as estimated
by the Chief Kti«(ineer, is . . .

To this must be added for commissions,
office and legal expenses, jind contin-
gencies

Total, . . . .

12,500,000

1,500,000
$14,000,000

Based on the payment of one-half in the capital
stock of the Comi)any ($7,000,000) and the remainder
in first mortgage bonds of the Company ($7,000,000).

This will leave three millions of the stock and one
million of the bonds in the hands of the Company.

Sufficient of the securities have already been
placed, to provide all the means necessary to pro-
cure the right of way, fence, grade, bridge, and pre-
pare the road-bed upon the whole line of railway,
for the superstructure, and to furnish the rails for,
and complete fifty miles of the same.
The estimated annual gross receipts

from traffic are, ....
The working expenses should not exceed

55 per cent, of the gross earnings,

even at the minimum rates, or .

14,000,000

Leaving of net revenue.
The annual interest on the bonds is
$560,000, and the contributions to the
Sinking Fund will average, say $80,-
000; this provides for the payment of
the interest and debt at maturity.

Making

Leaving net, .

2,200,000
$1,800,000

640,000
$1,160,000

which is equal to IG5 per cent, on $7,000,000 of stock.

.000

),000

The line is permanently located, and right of way
mostly obtained. The steel rails for one-half the entire
line are purchased, twenty-live miles of the road are
completed, and fifty miles more will be finished, at the
east end, this year. The grading on the balance will
be so far advanced by next S[)ring that track laying
can be resumed at the end of the finished seventy-five
miles, and pushed westward uninterruptedly to com-
pletion. The part first completed will be brought into
successful use as fast as the track is laid, as it will have
an outlet over the Canada Southern.

It is the design of the Company to have the whole
line of railway completed, equipped, and ready for
operation during next year.

A copy of the Bond and Mortgage is hereto ap-
pended.

M. COURTRIGHT,

President.

New York, August, 1872.

,000

MORTGAGE.

This Indkntitrk, made thiB tirst day of April, in the
year of our ^ord one tliousand eiglit hundred and
seventy-two, between the Ciiica(}o and Canada South-
ern Railway Company, a body politic and corponite,
«^\iHtin^ under and by virtue of the law8 of the States of
TlliiioiH, Indiana, Ohio and Micrhigan, authorizing the
consolidation of Railroad Companies to form a con-
nected and continuous line of Railway, party of the first
part, and Andrew T. Hall, of Boston, in the State of
Massachusetts, and Ken yon Cox, of the City of New
York, Trustees as hereinafter mentioned, parties of the
second part, witnesseth :

Wliereas^ The Michigan Air Line Railroad Company,
a corporation existing under and by virtue of the laws
of the State of Illinois ; the Chicago and Canada South-
ern Railway Company, a corporation existing under and
by virtue of the laws of the State of Indiana ; the North-
western Ohio Railroad Company, a corporation existing
under and by virtue of the laws of the State of Ohio, and
the Southeastern Michigan Railway Company, a corpo-
ration existing under and by virtue of the laws of the
State of Michigan ; have, under and by virtue of the laws
of tlie said several States of Illinois, Indiana, Ohio and
Michigan, become one consolidav d corporation by the
name of the Chicago and Canada Southern Railway
Company, whi(Oi, by vi tue of the laws of said several
Stat(3a, has full authori;/ to locate, construct, own and
operate a connecting, continuous and " ^nsolidated line of
railway through said several States oi Illinois, Indiana,
Ohio and Michigan, commencing in the City of Chicago,
Illinois, thence running througli the County of Cook to

I! "

the Indiana State line, on the western line of the town-
ship of Worth, in Lake County, in the State of Indiana,
thence through the Counties of Laki', Porter, La Porte,
St. Joseph, Elkhart, La Grange and Steuben, in the State
of Indiana, to the west line of the State of Ohio, and
upon the township line of the Township of Florence, in
the County of Williams and State of Ohio, to the north
line of said State of Ohio, in the Township of Gorham,
in the County of Fulton, at tlie south line of the Town-
ship of Medina, in the County of Lenawee, in the State
of Michigan, and thence through the said County of
Lenawee and the Counties of Monroe and Wayne, in the
State of Michigan, to the eastern line of the Township of
Monguagon, in said County of Wayne, in the State of
Michigan, which last named township line is upon the
Detroit River.

And, Wheueas, At a regular meeting of the stock-
holders of the said consolidated Railway Company, held
on the seventeenth day of January, A. D. 1872, it was
voted that the Board of Directors of said C(jmpany be
authorized to issue the bonds of said Company, to an
amount not exceeding in the aggregate eight millions of
dollars, in bonds of one thousand dollars each, numbered
from 1 to 8,000 inclusive, and to execute a First Mort-
gage Deed of Trust of the said Company's Railway and
its appurter i.nces, and all their lands, and present and
future property and effects of whatever kind and nature,
including all franchises and appurtenances thereunto be-
longing or in any way appertaining, to secure said
bonds.

And, Whereas, The Board of Directors of said Com-
pany, under said authority, have determined to issue the
said bonds to an amount not exceeding eif/JU millions of
dollars^ to enable them to complete said railway the en-
tire length thereof, which bonds, when issued, are to be
signed by the President and Secretary of said Company,
and certilied by the Trustees, parties of the second part,

which certificatioR sliall be conclusive evidence that such
bonds are of tlie issue intended to be secured by the said
Mortgage Deed of Trust, which said bonds, so to be
issued, are to be as follows, viz. :

THE UNITED STATES OF AMERICA.

Illinois, ) CHICAGO AND CANADA
Indiana, j^

SOUTHERN RAILWAY COMPANY

CONSOLIDATED CORPORATION.

First Mortgnge Seven per oent. Coupon Gold Bond

( Ohio,
( Michigan.

Number

$1,000.

Know all men by these presents, that the Chicago
and Canada Southern Railway Company is indebted to
Andrew T. Hall, of Boston, in the State of Massachusetts,
and Kenyon Cox, of the City of New York, Trustees, or
the bearer hereof, in the sum of one thousand dollars in
gold coin of the United States of America, which sum
of one thousand dollars the said Chicago and Canada
Southern Railway Company promise to pay to said
Trustees, or to the bearer hereof, in gold coin of the
United States of Ariierica, on the first day of April in
the year of our Lord one thousand nine hundred and
two (1902), at its agency in the City of New York, United
States of America, with interest thereon, in the mean
time, at the rate of seven per cent, per annum, also l)ay-
able in like coin free of government tax, at the same
place, semi-annually, on the lirst day of April and Octo-
ber of each year, on the surrender of the annexed crou-
pous as they severally become due for suc'h interest.

This bond is (me of a series of bonds issued and to be
issued to an aggregati^ amount not exceeding eight mil-
lions of dollars, in bonds of one thousand dollars each,
numbered froju 1 to 8,000 inclusive, and is secured by a
first mortgage deed of trust, dated the lirst day of Ai)ril,
eighteen hundred and seventy-two, duly executed and
delivered by the Chicago and Canada Southern Railway

i ;!

Company, to said Andrew T. Hall and Kenyon Cox,
Trustees, and conveying to them and their successors in
the trust the railway of the said company, its land, roll-
ing stock, tolls, revenues and present and future property
and effects, franchises and appurtenances, and in which
mortgage provision is made for a sinking fund to pay
said bonds, and the interest thereon, as they become due.

This bond and all the rights and benefits arising
therefrom, shall pass by delivery ; and at the option of
the holder thereof, may be registered for the time being
in the Company's books, at its office in the City of
Chicago, Illinois, or in the Company's books at its
agency in the City of Ne^ York, such registry being
noted on the bond by the Company' s transfer officer or
agent.

After such registry, no transfer shall be valid unless
made in the Company' s books by the person registered
for the time being as the owner thereof, which transfer
shall also be noted on the bond. Such registry will not
restrain or change the negotiability of the coupons by
mere delivery, but the holder of such coupons may detach
and surrender the same to be canceled, and have such
cancellation noted on the bond, in which case the interest
will be payable only to the person registered for the
time being as the owner of this bond.

After registration as herein provided, and before the
coupon shall be detached, the holder may transfer this
bond on the Company's books to the bearer, and there-
after it shall pass by delivery ; but shall continue subject
to successive registrations and tra nsfers to bearer ns afor<v
said at the option of each holder. Tliis bond is subject
to the conditions endorsed hereon.

This bond shall not become obligatory upon said
Company, until the certificate endorsed hereon is signed
by the Trustees.

In testimony whereof, the said Chicago and Canada
Southern Railway Company has caused its corporate seal
to be hereto affixed, at its office in the City of Chicago,
in the State of Illinois, and the same to be attested by
the signature of its President, and the signature of its
Secretary, on the first day of April, in the year of our
Lord one thousand eight hundred and seventy-two.
And said Company has also caused the signature of its
Treasurer to be affixed to the coupons attached to this
bond, in the manner provided by vote of the Directors of
said Company.

' ;., President.

ii.S. [

, Secretary.

-♦-♦-♦-

FORM OF COUPON.

35] THE CHICAGO & CANADA SOUTHERN [35
RAILWAY COMPANY

^Will Pay to th.e Bearer, at its A.gency in. the City
of New-York, on the day of 18

THIRTY-FIVE DOLLARS,

IN UNITED STATES GOLD COIN, BEING SIX MONTHS' INTEREST ON BOND.
Coupon

No. Treasurer. No.

TRUSTEES' CERTIFICATE.

We liereby rtu'tify that the witliin bond is one of the
sei'ies of bonds secured by the mortgage oi" det^d of trust
nientioncnl therein, and delivered to us as trustees, wliieh
1ms been duly recorded in the proper counties in the
States of Illinois, Indiana, Ohio, and Mi(;higan.

Trustees.

CONDITIONS.

This bond, at the option of the holder, will be made a
sterling bond, on application at the agency of the Com-
pany in New York, princ^ipal and interest payable at the
Company's agency in Lcmdon, England, or in the City of
New York, at the rate of two hundred pounds sterling
for the principal of the bond, and seven pounds sterling
for each coupon.

And, Whereas, The said Chicago and Canada South-
ern Railway Company, party of the first part hereto,
hath agreed to execute these presents, as and for a
First Mortgage Deed of Trusty to secure the said issue
of bonds aforesaid, being strictly limited to the sum and
amount of eight million dollars in the aggregate, as here
inbefore stated.

Now, THEREFORE, THESE PjlESENTS WITNESS that for

the purpose of securing the payment of the said bonds,
with the interest thereon, as aforesaid, and for the
further consideration of one dollar in hand paid by the
said parties of the second part to the said party of the
lirst part, the receipt whereof is liereby acknowledged,
the said Chicago and Canada Southern Railway Com-
pany, party of the first part, hatii granted^ har gained,
arul sold, and by these presents dotji grant, bargain
and selt unto the said parties of the second part all the
property which the said Chicago and Canada Southern
Railway Company, party of the fii'st part, now owns or
shall hereafter acquire ; that is to say : The said Com-
pany's railway in course of construction and to be made,
commencing in the City of Chicago, in the State of Illi-
nois, aforesaid, and running from said City of Chicago
to the eastern line of the Townshi]) of Monguagon, on
the Detroit Rivei-, in the County of Wayne, and State
of Michigan, aforesaid, being kx^ated and situated in the
States of Illinois, Indiana, Ohicj, and Michigan, on the

line aforesaid, including the riglit of way and the lands
occupied thereby ; and also the superstructure and
tracks thereon or to be thereon placed ; and all iron and
steel rails, ties, and other materials placed or used there-
on, now or hereafter 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 equipments, and all machinery, tools, imple-
ments, fuel, and materials for constructing, operating,
repairing or replacing the said railway, or any part
thereof, or any of its equipments or appurtenances,
whether now held or at any time hereafter acquired ; all
of which things are hereby declared to be appurtenances
and fixtures of the said railway, and to be included in
and pass by these presents ; and also all franchises con-
nected with or relating to the said railway, or the con-
struction, maintenance, or use thereof, now held or here-
after acquired by the said party of the lirst part ; and all
corporate and other franchises which are now or may
hereafter be held or exercised by the said party of the
lirst part ; and all property, personal or mixed, used on
the line of said road in constructing or operating the
same, together with all and singular, the tenements,
hereditaments and appurtenances thereto belonging or
in any wise appertaining, and the reversions, remainders,
tolls, incomes, rents, issues and profits thereof, and all
the estate, right, title, interesf, property, possession,
claim and demand whatsoever, as well in law as in equity,
of the said i)arty of the first part, of, in and to the same,
and any and (^very part thereof, with the appurtenances.

To HAVE AND TO HOLD the Said premises and every
part thereof unto the said parties of the second part as
Joint tenants, and not as tenants in common, and the sur-
vivor of them, and to their or his successors or assigns
forever.

I''

I 'I

• Nevertheless, in Trust, for the hoMers of said
Bonds and upon the following conditions, covenants and
agreements, and for the purposes herein expressed:

First. — Until default shall be made in the payment
of the interest upon the Bonds, or some part thereof, or
until default shall be made in something herein required
to be done by the Chicago and Canada Southern Railway
Company, the said railv^ay company, party of the first
part, shall be suffered and permitted to possess, oper-
ate, maintain and enjoy said railway, with its equipments
and appurtenances, and to take and use the rents, in-
comes, profits, tolls and issues thereof, during the term
of time the said Bonds, secured by this Mortgage Deed
of Trust, shall run before maturity.

Second. — In case any default shall be made in the
payment of any interest on any of said bonds, issued or
to be issued, according to the tenor thereof, or in case
default shall be made in any of the requirements herein
to be done or kept by the said Railway Company, party
of the first part, and such default shall continue for the
period of three months, it shall then be lawful for the said
Trustees, and on request of ten or more of the holders
of said bonds, representing in amount one million dollars
thereof, it shall be their duty, personally, or by their
attorneys or agents, with or without process of law (full
power and authority being hereby given for that pur-
pose), to enter into and upon all and singular the premises
hereby conveyed or intended to be, and each and every
part thereof ; and to have, hold, and use the same for the
benefit of the holders of said bonds issued under these
presents, to pay the interest thereon, operating by thom-
*^*4ves, or by their or his Superintendent, Managers, Re-
ceivers, or Servants, or other Attorneys or Agents, the
said railway, and conducting the business thereof, and
making from time to time all repairs and replacements,
and such alterations, additions and improvements thei'eto,
as may seem to them to be judiciofus and proper, for the

best interest of all parties concerned, and to collect and
receive all tolls, freights, incomes, rents, issues and profits
of the same, and every part thereof; and from the pro-
ceeds of such receipts, after paying all the expenses and
charges of operating the said railway and conducting its
business and all of the said repairs and replacements,
alterations, additions and improvements, and all taxes
and assessments, said Trustees shall pay the interest due
and unpaid on said bonds, in the order in which such
interest became due and payable, ratably to the persons
entitled thereto ; and after paying all interest on said
bonds, of which default was made by said railway com-
pany, and all interest which shall fall due on said bonds
thereafter, so that no interest shall remain unpaid and
no default shall exist in anything herein required to be
done or kept by said railway company, said partj of the
first part, then the Trustees shall restore the possession
of the property, railway franchises, and appurtenances
to the said railway company and its successors ; and as
often thereafter as said company shall so make default in
the payment of interest or in anything to be done or kept
by said company, on such further request of said bond-
holders in number and amount as herein stated, said
Trustees shall take possession of all the property and
effects hereby mortgaged, or intended so to be, and
operate said railway and property as hereinbefore stated,
and pay the interest in default of payment as provided.

And it is further stipulated and provided, for the pur-
pose of giving an additional and further security and
guarantee to insure prompt payment of the interest of
said bonds, as it shall mature and become due and pay-
able according to the tenor of said bonds, as follows, viz. :
That in case default shall be made at any time in the pay-
ment of any interest on any of said bonds issued under
these presents, then tlie holders of said bonds or any ten
or more of t;hem, acting for themselves and others repre-
senting in the aggreg;ate one milllion of dollars of said
bonds, shall have the right at any time after six months

liave elapw^d lifter such default shall hMV(^ been made in
the payment of interest, and said (h'faidt then existing-,
to elect and declare the principal of all of said bonds dn(5
and payable, and that then and in such caseth*^ ])rincipal
of said bonds shall then be deemed due and payable to
all intents and purposes the same as thongh said Ixmds
were all due and jmyabh^ by the terms thc^reof, anything
contained in said bonds or herein to the contrary notwith-
standing, and that in such case, or in case default shall
be made in the payment of the princii)al of said bonds
issued or to be issued under these presents, when the
same shall beconu^ due and payable according to tln^ t(n'ms
thereof, at the request of said bondholders to the said
number and amount, the said Trustees shall immediately
elect and declare the principal of all of said bcjuds to be
then due and payable, and shall foreclose this mortgage
deed of trust for the principal of all said l)onds issutnl
under these presents and the interest unptiid thereon, and
enforce payment thereof as speedily as possible, instead
of operating said railway and conducting the business
thereof as herein provided for in case of default being-
made in the payment of interest, and such default con-
tinued for a period of three months.

And the said Chicago and Canada Southern Railway
Company, party of the lirst part, in such case doth hereby
irrevocably authorize and empower the said trustees on
such request to make sale of all and singular the prop-
erty hereby conveyed or intended to be conveyed, or so
much as may be necessary to pay off the said bonds
issued under these presents, and the accrued interest
thereon then unpaid. Such sale shall be at public auc-
tion at the north door of the Court House in the City of
Chicago, Illinois, or at such other place as the said Trus-
tees may select, to the highest bidder or bidders, first
giving notice by publication in one or more leading news-
papers of general circulation in each of the Cities of
Chicago, Detroit and New York, for ninety consecutive
days before the day of the sale, setting forth the time

and pliKie and term^ of such sale and tlu^ property to
be sold ; and on such sale said Trustees may convey to
th<» })ur(5liaser or purchasers, by good and sufficient con-
v(^yance, all the property so sold, which sale and con-
veyance shall be without redemption and without any
right or claim of the ])arty of tlu^ first part to the benefit
of any valuation or appraisement laws ; and such sale
and conv«eyance shall be a perpetual bar to all claims or
right of said party of th<^ first part of and to said prop-
(irty, and (every part thereof, botli in law and (equity, and
to all parties claiming from or under the said i)arty of
the first part forever ; and such sale and conveyance'
shall vest in the purchaser or purchasers, his or their
heirs and assigns, full and absolute title to all the prop-
erty so sold forever. The said party of the first part, to
that end hereby waiving all right and equity of redemp-
tion tlien existing under the laws of the States of Illi-
nois, Indiana, Ohio and Michigan, or any one or more
of said States, and also hereby waiving all rights what-
soever under appraisal and valuation laws then existing
in said States or any of them.

It is further provided, and by and on the part of the
party of the first part, it is agreed that in case said Trus-
tees shall deem it advisable for the interest of the bond-
holders to resort to judicial proceedings to foreclose this
mortgage rather than to advertise and sell as herein pro-
vided, then, in that case, said Trustees may proceed in
any Court, State or Federal, having Jurisdiction in either
of the States of Illinois, Indiana, Ohio or Michigan, to
foreclose the same, and the equity of redemption of the
party of the first part in said property, and enforce a
sale thereof by judicial process ; to pay and satisi/ the
whole amount of said bonds with accrued interest there-
on in the same manner as though said bonds were all
due and payable by the terms thereof, which sale shall
be absolute and without redemption, and shall be a per-
petual bar to all right or claim whatever of said party
of the first part, of, in and to said propen ^, v: to every

part thereof. The Haid party of tlie first part doth h(?re-
by waive all right and equity of red(aiii)tioii existing un-
der the laws of the States of Illinois, Indiana, Ohio and
Michigan or any one or more of them, and also all right
whatever under appraisal or valuation laws then ex-
isting in said States, or any of them, to the end that
full, absolute and perfect title may be made to the
purchaser or purchasers at such sale, in and to said
property so sold under judicial proceedings as provided
for herein.

Third. — The said Chicago and Canada Southern Rail-
way Company, shall, from time to time, and at all timeti
hereafter, and as often as requested by the said Trustees,
execute, acknowledge and deliver all such further deeds,
conveyances and assurances in the law, for the better as-
suring unto the said Trustees, upon the trusts herein ex-
pressed, the said railway, the equipments and appur-
tenances hereinbefore mentioned, and all other property
and effects 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 here-
after acquired by said railway company, as by the Trus-
tees or by their or his counsel shall be reasonably ad-
vised, devised or required.

In case of any sale of the property under the trust, as
herein provided, and all the outstanding bonds issued
under the provisions hereof shall not be represented at
such sale, then said trustees shall represent such of the
bondholders as are not otherwise represented, so that no
preference or advantage can be gained by one or more of
the bondholders over other holders of said bonds on such
sale of the property under tlit?se presents. And at any
such sale, under these presents, the said trustees, parties
of the second part, may at the request of a majority in
value of the said bondholders, bid in or purchase the
said property for the benefit of said bondholders, in pro-
portion to their respective interests.

Fourth. — The Board of Dirpctors of tho Chicago and
Canada Soutlicin Rnilvvny Company may from time to
time, by resolution, require siild Trustees, by way of re-
lease or otherwis*^, to discliarg*^ from the operation of
these presents, any lands acquired or held for the pur-
pose of stations, depots, shops or other buildings or
premises connected tln3rewit!i, or which may be held for
the su])X)ly of fuel, gravel or other materials, or any
lands which may have beconu* disused by reason of a
deviation in the said line or of a change of the location
of any station-house, depot, sho]) or other building or
premises, or any lands wiiicii the said Board of Directors
may d em it exp(3dieiit to disuse or abandon, by reason
of sucn deviation or change, and which lands respec-
tively shall, by resolution of said Board, be declared to
be unnecessary for the purpose and business of said
Company ; and in every such case, the said Trustees,
when so required, shall execute such releases and dis-
charges accordingly ; and it is hereby declared, that any
lands which may be acquired in substitution for lands
so released or discharged, as well as any lands subse-
quently acquired by said company, for the use or
convenience of its railway, or in connection therewith,
shall be deemed to come within the oi)eration of these
presents, and to be included therein, and shall be con-
veyed to and held by said Trustees upon the trust of
these presents ; and it is further declared that said Com-
pany may, from time to time, sell or dispose of any part
of the equipment, rolling stock, machinery, implements
or material, at any time lield 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 equipments, rolling stock,
machinery, implements or materials shall come within
and be subject to these presents.

Fifth. — If the said Chicago and Canada Southern
Rail^yay Company shall well and truly pay the bonds

isHUf'd un(l«»r those pros<'iits icciiiirrd to Ix' paid by wiid
CoTfipjuiy, and all int<TeHt tln'rcoii, according totlictoiior
and «^tt'('ct ofsak^ bonds, and sliail well and tndy ki^'p
and iM'rf'orrn all things herein iciiuircd to be k(*j)t or
pert'ornu'd by the said C(Hnpaiiy, accordin*!; t(» the ti in-
intent and niejining of these ])resents, then, in that case,
the estate, right, tith^ and interest of tln^ said parties of
the second part, and of their su(!cess()rs in thetrnst here-
by created, and all the e(inity of bondholders in said
pro])(U'ty shall cease and deteimine and become void
without any release l)y said Trustees, but it shall be tlu^
duty of said Ti'ustees to nniunvey tin? ])roperty to the
party of the first ])art, by deed of lelease. Otherwise
these presents shall b<> and remain in full foice and
virtue.

II !

—It is mutuaHy agnn^d by and betwecni tln^
parties lun-eto, that the word "Trustees," as used in
these })r(^sents, sliall be construed to mean the Trustees
for the timc^ being, wlu^ther one or both be* original or
new, and whent^ver a vacancy shall exist, to mean the
survivor or continuing Trustee ; and such Trustee shall,
during such vacancy, be com])etent to exercise all the
powers grant(Kl by these ])resents to the parties of tln^
second ])art. And it is mutually agreed by and between
tlie ])arties hereto, as a condition on which the parties of
th(^ S(H3ond i)art liav(i assented to these presents, that the
said Trustees shall not, in any manner, be responsible
for any default or misconduct of each other ; and that
said Trustees shall be entitled to just compensation for
all services which they may her(»after rendm' in their
trust, to be paid by the saia Company, and that either of
the said Trugtees, or any successor, may resign and dis-
charge Inmself of and from the trust created by these
presents, by notice, in writing, to the Chicago and Can-
ada Southern Railway Company, and to the existing
Trustee, if there be such, ninety days before such resig-
nation shall take effect, or such shorter notice as they
may accept as adequate notice ; and that the said Trus-

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tees, or (Mther of tlieni, and Mmmi- or his suriM'ssoi- or
8U('.(;e88ors, may l)e reniov<'(l hy the vote of a injijority in
interest of the hohh'rs of the afoi'i'said bonds tlieii out-
standing, the said vote being had at a meeting ealled by
th(^ liolders of at h'ast five: inindred thousniid (h)Uars of
said bonds, by advertisement i»nblished foi- thirty days
in a daily ne\vs})a})er of hirge circulation in eacii of tln^
cities of (Chicago, Detroit and New York, respectively;
and at said meeting said bondholders may vote in person
or by ))i-()xy, and their said vot(^ shall be attested by an
instrunu'iit iin(h'r the hands and seals of the persons so
voting. And in case a vacancy shall occur in said Ti-us-
teeship by(h';ith, resignation or otherwise, or in (uise said
Trusteeship become entirely vacant, the same may be
tilled by said bondholders at any time within ninety days
after the same shall (XH-ur, at a meeting called by the
same number of l)ondholders antl in the '^•;iTne manner as
])rovid<>d above for the removal of a Trustee, and tln^ ])ro-
ceedings at such meeting and tln^ attestation thereof
shall be the same as is above })rovided in cast^ of a meet-
ing for the removal of trustees, and in case said vacancy
is not so tilled within said ninety days, then either the
remaining Trustee, if there be one, or the Board of Din^c-
tors of said Railway Com])any may a]»})ly to any Court,
State or Fedeial, having (chancery jurisdiction, in either
of the Stat<'s of Illinois, Indiana, Oliio or Michigan, for
the a])])()iiitment of [I new Trustee, giving such notice to
the other as the Court may direct. And such Trustee or
Trustees so aj)pointe(l shall have all the right and title,
and be clothed with all the power and subje(;t to all the
duties herein mentioned in the same manner and to the
same extent as if named in this Mortgage as such Trus-
tee or Trustees.

Seventh. — It is further provided and agreed, on the
part of the party of the tirst part, that in cas(? the said
Trustees shall neglect or refuse to perform any duty un-
der this trust, as to taking possession of the property
and making sale thereof as herein provided, or to fore-

close this Mortgage Deed of Trust in any Court liaving
jurisdiction thereof in either of said States, as herein
provided, on demand of ten or more of the said bond-
holders as herein provided, then in such case of neglect
or refusal, said bondholders, or any ten or more of them,
hv Iding an amount in the aggregate of one million of dol-
lars, shall have the right and i)ower irrevocable to insti-
tute such proceedings in any Court, State or Federal,
having jurisdi(5tion of the subject matter in either of the
States of Illinois, Indiana, Ohio or Michigan, thi'ough
which said railway may be constructed, in their names,
for themselves and all other holders of said bonds issued
under and secured by these presents, as may or will
protect the holders of said bonds, and insure a decree
of foreclosure and sale of the pj'operty, and a closing of
said trust ; to pay and satisfy the interest due and un-
paid on said bonds, or the ]jrincipal thereon, to the full
protection of tlie holders of said bonds in all things under
these presents, making said Trustees parties defendant,
and charging such neglect or refusal.

And it is further agreed that the hokh^rs of any of said
bonds, after registration thereof, as provided in said
bonds, may trom time to time transfer the same on the
books of the Company, as providc^d in said bonds.

Eighth. — The said Chicago and Canada Southern
Railway Company, party of the first part, hereby cove-
nants and agrees that said Conipan}^ shall and will pay
the principal and interest of said bonds to the several
holders and owners thereof^ when and as the same shall
become due and payable according to the tenor and eH' ct
thereof, and shall and will assum<^ and pay all taxes that
may be assessed upon said bonds from time to time by
the government of the United States, and also all taxes
assessed upon said mortgaged property or any part there-
of, both general and special, in the several States through
which said railway extends, so that said property mort-
gaged shall be free from all liens or charges for taxes or

lavmg
lierein
bond-
leglect
tliem,
ofdol-
» insti-
3dei'al,
of the

U'OUgll

names,
issued
or will
decree
►sing of
bud iiu-
tlie full
:4 under
t^ndant,

of said
in said
on tlie

3utliern
>y cove-
vill pay

several
[le shall
id eiTV'ct
xes that

time by
11 taxes
rt there-
through
ty mort-

axes or

assessments in said States of whatever kind or nature.
Said bonds, or any of them, at the option of the holder,
will be made sterling bonds, on application at the agency
of the Company in New York, principal and interest
payable at the Company' s agency in London, England,
or in the City of New York, at the rate of two hun-
dred pounds sterling for the principal of the bond, and
seven pounds sterling for each coupon.

Ninth. — And the Chicago and Canada Southern Rail-
way Company hereby covenants and agrees to and with
the said party of the second part, that said Company
shall establish a Sinking Fund adequate for the redemp-
tion and retiring at par of all of said bonds in the gold
coin of the United States of America at the maturity
thereof ; and that said Sinking Fund shall be used for
such redemption and retiring of said bonds and for on
other purpose ; and that said Company will commence
establishing and creating said Sinking Fund, and pay into
said fund on or before the first day of April, one thou-
sand eight hundred and seventy-eight (1878), one hun-
dred thousand dollars, and will continue to pay into said
Sinking Fund, on the first day of April of each year, an
amount increased each succeeding year, so that said
Sinking Fund shall be adequate to redeem and retire all
of said bonds by the time they mature by the terms
thereof ; that is to sa} , said Company will pay into said
Sinking Fund for the use and purpose aforesaid the
several sums, and at or before the dates as follows, viz. :

On the first day of April, in the year A. D.

1878, the sum of $100,000

On the first day of April, in the year A. D.

1879, the sum of $118,000

On the first day of April, in the year A. D.

1880, the sum of $136,000

On the first day of April, in the year A. D.

1881, the sum of $156,000

I I

On the first day of April, in the year A. I).

1882, the sum of $173,000

On tlie first day of April, in the year A. D.

1883, the sum of $191,000

On the first day of April, in the year A. D.

1884, the sum of.. $210,000

On the first day of April, in the year A. D.

1885, the sum of '. $228,000

On the first day of April, in the year A. D.

1886, the sum of $246,000

On the first day of Ai)ril, in the year A. D.

1887, the sum of _ $265,000

On the first day of Anril, in the year A. D.

1888, the sum of $283,000

On the first day of April, in the year A. D.

1889, the sum of $301,000

On the first day of April, in the year A. D.

1890, the sum of. $321,000

On the first day of April, in the year A. B.

1891, the sum of $338,000

On the first d?iy of April, in the year A. D.

1892, the sum of $350,000

On the first day of Aj)ril, in the year A. T>.

1893, the sum of $376,000

On the first day of April, in the year A, D.

1894, the sum of $393,000

On the first day of April, in the year A. D.

1896, the sum of $411,000

On the first day of April, in the year A. D.

1896, the sum of. '. $431,000

On the first day of April, in the year A. D.

1897, the sum of $448,000

On the first day of Aj)ril, in the year A. D.

1898, tlie sum of. $466,000

Oh the first day of April, in the year A. D.

1899, the sum of $486,000

73,000
91,000
10,000
28,000
146,000
165,000
J83,000
301,000
321,000
338,000
350,000
376,000
393,000
411,000
^431,000
448,000
H66,000
1486,000

On th(» first day of April, in tlie year A. D.

1900, the Sinn of $503,000

On tlie first day of April, in the year A. D.

1901, the sum of $522,000

On the first day of April, in the year A. D.

1902, the sum of $542,000

Amounting in the aggregate to $8,000,000 ; and the
amount hereby appropriated for the redemption of said
bonds shall be applied as thus appropriated to the pur-
chase of bonds issued under these presents at the lowest
rates at which said bonds can be purchased, not however
exceeding the par value thereof and tlie accumulated
interest thereon, and to effect this the Board of Directors
of said company will, by public advertisement each
year, solicit offers of such bonds to the amount appro-
priated in each respective year for this purpose. But if
sucli bonds cannot be purchased at par, the said Board of
Directors will be at liberty to purchase said bonds at
their market value, or to invest the amount thus appro-
priated in any other way, which in their judgment will
be most for the interest of the Sinking E'und. The
bonds of said compau}" so purchased, together with the
coupons attached, shall immediately upon the purchase
thereof be cancelled.

The bonds secured by this mortgage deed of trust are
stamped when issued as required by the United States
Internal Revenue laws.

In testimony whereof, and in pursuance of a resolu-
tion of the Board of Directors of the said Chicago and
Canada Southern Railway Company, passed on the
twenty-fourth day of January, in the year one thousand
eiglit hundred and seventy-two, the said Railway Com-
pany of the first part lias caused its corporate seal to be
affixed to these presents, at its office in the City of Chi-
cago, in the State of Illinois, and the same to be attested
by the signature of its President and the signature of its

; f

i) iii:

Secretary, and the said Trustees have hereunto set their
respective hands and seals to testify their acceptance of
the said trust, the day and year first above written.

Attested by

President of said Company.

Attested by

Secretary of the Company.

The undersigned hereby accept said Trust.

, [SEAL.]

, [seal.]

TVtistees.

Signed, sealed and
delivered in presence of

M Moftgage, 1 h\ Cent. Sinking Fund Bond,

It "^ 'Hi r fH

"S** » ''s^ ^"^ ^^

Payable, Principal & Interest in U. S. Gold Coin.

INTEEEt^T PAYABLE

^^ril ht dt\d October ht in cHcfj §m,

ra i(i;w/ YQMK.

-»■-«♦»•+-

TRUSTEES' CERTIFICATE.

We hereby certify that the icitJiin Bond is one of
the series of Bonds secured by the Mortfjaye or Deed of
Trust mentioned titer ein, and delii^ered to us as Trustees,
which has been duly recorded in the proper Counties in
the States cf lUinois, Indiana, Ohio and Michigan.

y Trustees.

jasi^;,„.*^.^,

^itoiv hU f^m bf) tbcne ^resenfSt ^^^ //^ chicaco and ca

^ 3Sc'j^C'n, tn //e rj/a/e f/ t.^a^jdac/iade^/d , ana ^:^:en^cn ^ccc, c/ //ie ^e/y

~v:off>/i(niu /ti' //ft.te fr- /tay /'■ Jf/n/ -^/>u.iffe.\ oi /o <Vw> /'eaUi AeUo/, tn '~{y.o/(/ H^cin f>/ <ne ^/inUec/ QftatiA of G4
a>i(/ <H<o //fJ02,/ a/ th ai^eticy. /// //le V'' tfu o/ Gyiew WoiA; '^//nUec/ '^//a^e.^ 0/ Q^t/niica, /t'i//i in/eifit meif,
Ate (■/ (/fi'i.iii/iien/ fur, tif //?<■■ .utme /i/ctce. te/)/i^annuaff», on me /<iif (/au // ^^/tu/ am/ Ucfovei 0/ Kir/i utai, i
Q/ftt^ /■/■/»(/ (J f/ie 1/ a Mtri.) f/ /oncn iMiixi rnia fo ^e rMu^a /o an aaaieriate anirunf no/ erceef/tna etynf /nit/eon
a?i'/ /.) .>ecn>e</ Au a //>,>/ n/o'/fi/ai^e i/e/u 0/ /luif, (latea l//e /tiit (/au n/ Gt/iu/, eiynfeen /lunaiet/ ana devfin/u-f/co, r/u
/o 'au/ '^.^ni/>eiiA -'Z. &/ca/( an(/ --//enuon /fox, Q/lu:>/ee,\ anf/ conveytna fo /netn, an(/ /n/ei McceMoh* en /ne (iitif,
/ufiO' /lio/tti/ty, ana ef/ec/i. paticni.te.* una aA/iuifenancei, am/ en iia/iicA moifaaae Mov/Mon /.i mae/f- /( > a Hn/tni
^//t<i /otif/ <in(/ a// //le tir//i/a ana /ftie/i/j aU^itia Meff/iciH, 4/(1// /laja /» (u/ti/ety ,■ ana a/ Me «/i/ton Of //le /ir/</t
'■/ K/ttcayc <y//ituea, ci (<n //if ^'nt//ani/'is /(<A<i a/ «/tl aytucy in me ce/y c/ ^yffw U04/' , <iacA teata/tt/ /etna *to/ea c*i
ra/('/ t'nMi mar/i in //le Tcftn/iany d /o(/'a /y //le /idaon ttyt^/e^et/ /oi ///e /ettie /etny a<i //it cwnei //etec/ it/tcn /tand/el
//( coti/iona /y >/ie4e f/e/tiie4y, /it/ //e /n/t/et c/ 4(ie/i ccti^e*i4 may tK/aen attei Jentent/i //le janie /o /e eattc<//f(/ ant/ /lai
iiyid/elet/ /nl //le /ime /einy «J //e fn net 0/ //u fiont/. tJ^v/fel ieaia/ta/ton, aa /ttetu /ilovit/et/, ant/ ot/cif //t ryti/itn -i/a// I
t/ 4n«// /iad4 /y t/i/ii'eiy / /tt/ j/ii// 1 n/t/iiie ait/yec/ /o dticcejitttie teaid/ta/icn4 tim/ /t.and/et.i /o /ealfl, tu a/otedait/ a/ //le f/i
/le/ /fcr,me tZ/tya/tty n/icn datt/ Krtn/iany, nn/t/ //le tret /<j/tea/e ent/eidet/ ne4(0n id dtynet/ /y Mt ,yitid/etd.

|^Hlt($timoiU| tvhdtof, the mid Chicago and Canada Southern Railway Company has fan><ed its corpon

same to lie attesttd tnj the sir/nafufe of its President, and the siynatiire of its Secrettiry, on the first day of April, in t

And said mmpavy has (tiso caused the signature of its Treasurer to he affixed to thi- coupons attached to th

<.,/>

/■ezl'i

€Ci€.'i€l-lt/.

^■i ' iTC '» 0' » <^j»o '» w fi» (g>» ' '(i i ijC'( i;! i(j^(. » »o i a>g i iiiO'a'-'' i io y
corpoN NO. 00. ; ;

The Chicago and Canada Soulhero Railway CompaDy : >

Will pay to the bfiirtr, at itit Aifciicy in the City of New York,
uri tlio linit ilay of April. IWi, THIRTY FIVE noM.AHS, in
l'iilt«d SUtM Gold Coil), being six moDthH' interest on Bond

J. t36.00 TTiaturrr

ws.

COn-ON NO. 50.

The Chicago and Canada Southern Railway Company

Will pay to the hearer, at its Agency in the City of New York,
on the flfHtday of October, 1901, THIRTY-FIVE DOLLARS, in
* I United SUteii Gold Ooin, being titx monthfi' Interest on Bund
t I No

ji f 3.'). (X) Treaiurer. < ^

)Q» k ' '• .ml e-iOeiii) i3^ <B a> < ffl i i >' ' < SCei€> « €)gC >' 0C »< i>ii)eni) ' B <Q(

COn'ON NO. iJS.

^1 The Chicago and Canada Soulhern Railwa]

(J Will pay to the bearer, at it.s Aiteucy in the City o
( ) on the (irjt day of April, 1901, THIKTY-FIVK D(
< ' United States Gold Coin, being »ix months' inter

}35.00

B OF

SEVEN PER CENT. COTJt?^

GOIS ^■^■

tttti

^/^ CHICAGO AND CANADA SOUTHERN RAtLWAV COMPANV a mMe</ /o ^s^m/iew W. ^a//,
ccc, o/ l/ie ^t/y c/ r^yj eti^ r/ci^, tJiua/eed, oi me ^eaiei Aeiee/^ m me dum c/

'i/ia^ei o/ Qrmeiica, wfiicA m/m r/ one mouiam/ r/r/Yuii, //« .iaer/ -KrAtcar/o a/ie/ &ana(/a G^uiAetn ^lai/ifai/
'e ^((nifea S/tadA o* Q't/>ie>ica, on </ie /lUt aau o/ Q^/iii/, tn Me '-uea'/' of nui ,^£oia one inotoana nine nu/ic/let/
iifUca, ii'f/n. inMeit me>u-/t, e/i Me mean hn//, af M/ ia& o/ ieven At> ce?i^. he/ annum, aSo /lauuv^ in (Me corn
/ C/cfoOei o/ eac/i ■ueai, on Mte ^uiienaei o/ M/f annrxti/ couAon^ ai ine-u ieueta/cu oecome t/ue /oi JucA tn/e>eif.
/ e.rceer/inf/ eian( /nlMtoni of f/cf/ai>, tn vonai o/ one Moudana f/ofea>,) eaM, nu/n.l>eiea fiotn / <o 6',000 tne/uMve,
n(/iea an(/ ieuenfi/^ftco, (/ufu exeeutec^ ana </e(ii/ele(/ 6-fj Me -K>nicaao an(/ '/hana(/a ^^i^uMiein J^at(u/au -fyo?nhani/,
'Afti it/cceMoiJ en Me fttnf, Mie iaicu/ay of Me iatu comhanu, eify (ana, iowna .i(oc4, (o(i&, ievcnuet ana /ile,>enf am/
<•>/ /.i /nae/e /f> a un/fina /una to Aau iau/ Oonr/i, ane/ Me tnieieif (Aeiecn, ai (//eit Oeconie clue.

■e a/ Me f/(fyn r/ Me Actaet Me tee/ may /'e teyftd/eien /oi Me tt'nie /leena tn Me &fin^any'j /'(OKa, a/ <Vj c//(ce <ti Me ci/i/
'■ten teytii//// /eifia *ic/ef( fn Me /•(•»</ /y Me ^ont/ittMy 'a (latiMt cfficet ci ayen/. i^j/Zet attc/i teyially, no /tf4ini/et d/a// /e
emet Meieey, wntM (tana/et <i/iaM a/.io ^e no/eet on M^ vona. MitM teytilhy Uitt/ no/ tea/iain 't cAaiiye Me neaf/taot/t/y c/

/o (e caMctMrtr, <i/ifr /i</iie iiitc/i cei/iefMi/ffi nc/et/ cn Me vona, /■// if/te/i eaae Me tfi/eted/ wt/e te Anyar/e on/y /> Me AeiMn
t(/ /e/ote Mr /!ot//tr./i .iAaU Oe tte(acfie/r. Me Aofrtei fnai/ /lan.tfel Mi-i oomt on Me wcm/iany'd ooon-i /o Me /ealel, ana Meieei/fet
tiel, (i.i it/ote-intr/, a( (/fe r/i/roit 0/ encf/ noir/el. lynii f'onrr tii ,irto/ec( (o Me con(/t(to)U enacuen Aeteon. ,Mntd /tonti MaM

(etii.

'ly has caused its corporate seat to he hereto ajfj'.red, ai its office in the city of Chicago, in the State of Illinois, and the

he first day of April, in the yvar of om- Lord one thouxand eight hundred and xercntv-two.

'hi', coupoiiti (iltaclii'd to this bond, in the manner provided hy vote of the Directors of said Company.

l€4-i'

^e-n/.

ftCTa i O' . ao@0' a .flw > a ' [B ^(ao'Siq'ace oci o ro « ^^

COLI'ON NO. 58.

cap and Canada Southern Railway Company

y til tile bt'iirer, at it.s Agtucy in tby City nf New York,
8t .lay of April, 1901, THIRTY FIVK D0LLAK8, in ( )
tateR Gold Coin, being »ix months' interest on Bund ; ^

Treamrer.

^iO(i 8 .CT i aq<ij0T i a®Bc? e> (»aa'aG><B(!> e .0! « a > QC!y@O !

COUPON" NO. 57.

The Chicago and Canada SoDthero Hallway Company

Will pay to tbe bearer, at \U Agency in the City of New York,
on the lirstday of October, 1900, THIRTY-FIVE DOLLARS, in
Tnited States (Jold Coin, Iwing six iDontlu' interest on Bond

$35.00 Treasurer, i,

' £i ' aD®tt> « oqo'fflit>« a«< i) ' e > ij' a< pq€) e 0g i iQg>oo<P ii{,

COUPON NO. 5li. I )

1 1 The Chicago and Canada Sonlbern Railway Company j !

Will pay to (he bearer, at its Ageiu-y in the City of New York, ( )

on the nrst day of April, 1800, THIRTY-FIVE DOLLARS, in

United States Gold-Coin, being six months' interest on Bond I ^

No j)

$35.00 Treaturer.

<^J.'A«»^^-. ^.

V-

CoyDlTION.

This Bund, at the option of the holder, wit/ In-
made a Sferlinf/ Bond on application at the Aaeneii
oftheVompanj/in New Yorl' : Prinrijml and In-
terest payaldeot the Company's Aijenrii in London,
England, or in the Vity of New Yorl; at the rate of
two hundred pounds sterliny for the prineipal of
the Bond, and seTenponnds sterling for each coupon.

Fiist Moftgaie,

Payable, Princips

INT.

g^ril hi iu\i

TRUST
We herehy cer
the series of Bonds
Trust mentioned th
which has Iteen dn
the States of IlUm

■

'me,.

M Moft|agei } Pet Cent, Sinking Fund

Payable, Principal & Interest in U. S. Gold Coin.

IXTKRKST PA TABLE

^pril hi m\d October hi in eacff Qenr,

TRUSTEES' certificate:.

M^e licit')!/ fcitify that the within Bund is uiw of
the .scries of Bonds secured 1)1/ the Murtf/iuje or Deed of
JVi/sf mc/itioiicd therein, and delioered to us as Trustees,
whicJi, has l)een duly recorded in the praper Counties in
the states of Illinois, Indiana, Ohio and Mtc7iif/an.

Trustees.

Condition.
■ ■' ^

A Sinking Fund will he cstattlished by this Company

in pursuance of the Mortyaye Deed of tru.st, adequate

for the redemption and retirement of all the Bonds qf

this series, l)efore the maturity thereof, by j)ayinfi info

the same the sums mentioned t)clow in i/old coin, on, or

before the respectice days merdioned below :

TIME OF REDEMPTION.

Ou the
On the
On the
On the
On the
On the
On the
Ou the
On the
Ou the
On the
On the
On the
On the
Ou the
On the
On the
On the
Outhe
On the
Outhe
On the
On the
Outhe
On the

first day
tirst ihiy
first (hiy
first day
first day
first day
firat day
first day
first day
first day
first day
first day
first day
first day
first day
first day
first day
first day
first day
first day
first day
first day
first day
first day
first day

of April, in the
of April, in the
of April, in the
of April, in the
of April, in the
of April, in the
of April, in the
of April, in the
of April, in the
of April, in the
of April, in the
of April, in the
of April, in the
of April, in the
of April, in the
of April, in the
of April, in the
of April, iu the
of April, iu the
of April, in the
of April, in the
of April, in the
of April, in the
of April, in the
of April, in the

SUMS PBOVIDED THEKEFOIi.

year A.D. 1878, the sum of 8100,000.
year A.D. 1870, the sum of S118,()0(*.
year A.D. 1880, the sum of J8ia6,000.
year A.D. 1881, the sum of 8156,000.
year A.D. 1882, the sum of 8173,000.
year A.D. 1883, the sum of 8101,000.
year A.D. 1884. the sum of 8210,000.
year A.D. 1885, the .sum of $228,000.
year A.D. 1886, the sum of $2i6,000.
year A.D. 1887, the sum of 8265,000.
year A.D. 1888, the sum of 8283,000.
year A.D. 1880, the sum of 8301,000.
year A.D. 1800, the sum of 8321,(M)0.
year A. D. 1891, the sum of 8338,000.
year A.D. 1892, the sum of 835(i,(W0.
year A.D. 1893, the sum of $376,000.
year A.D. 1894, the sum of $303,000.
year A.D. 1895, the sum of $411,000.
year A.D. 1896, the sum of 8431,000.
year A.D. 1897, the sum of $448,000.
year A.D. 1898, the sum of $406,000.
year A.D. 1899, the sum of $486,000.
year A.D. 1900, the sum of $503,(X)0.
year A.D. 1901, the sum of 8522,000.
year A.D. 1902, the sum of $642,000.