ÔONFIDENTIAL. [printed for the use of the committee.] REPORT to the EXECUTIVE COMMITTEE of the Alabama, New Orleans, Texas & Pacific Junction Railways Co., Limited and Alabama Great Southern Railway Co., Limited, on the ASSOCIATE RAILWAYS. / by Mr. FRANK S. BOND. » Nkw York : November 2d#1884. > "feb V* INDEX, PAGE. List of the" Erlanger Railways," ' . .3 Their Capitalized Cost, .... 4 y Cincinnati, New Orleans & Texas Pacific Railway Co., 6 Cincinnati Southern Railway, ... 8 Cincinnati Terminal, . . . .9 Cincinnati Southern Earnings, . , . 11 y Alabama Great Southern Railroad Company, . . 13 A. G. S. Earnings, . . . . . 16 A. G. S. Floating Indebtedness, . . .17 V New Orleans & North Eastern Railroad, . . 18 i New Orleans Terminal, . . . .20 N. O. & N. E. Earnings, .... 22 N. O. & N. E. Floating Indebtedness, . . 23 New Orleans, Spanish Port & Lake Railroad Co., . 23 V Vicksburg & Meridian Railroad Company, . . 25 Y. & M. Reconstruction Expenditures, . . 27 Y. & M. Earnings and Expenses, . . .28 y. & M. Floating Indebtedness, ... 29 /V. & M. Lands, ..... 30 V yicksburg, Shreveport & Pacific R. R. Co., . 32 y. S. & P. Earnings, . . . . .35 y. S. & P. Floating Indebtedness, . . 36 y. S. & P. Lands, . . . .36 Change of Gauge, . . . . . 37 Mississippi River Transfer, . . . .38 Equipment, ...... 40 General and Local Organization, . . .41 In Conclusion, ..... 45 Appendix "A," Cincinnati Southern Railway, i 49 " "B," Alabama Great Southern Railroud, ^7 " "C," New Orleans & North Eastern Railroad, , 64 " "D,*, Vicksburg & Meridian Railway, . 72 " "E," Vicksburg, Shreveport & Pacific Railway, 80 « "F," Mississippi River Transfer at Vicksburg, 87 " "G," Rolling Stock, all Divisions, . 96 confidential. Printed for use of the committed Mr. Otto Plock, ) Mr. Isaac P. Martin, >• New York, Mr. Frank S. Bond, ) Executive Committee in the United States of the Alabama, New Orleans, Texas and Pacific Junction Railways Company, Limited, and Ala¬ bama Great Southern Railway Company, Lim¬ ited ; both of London, England. Gentlemen : 11 By request of the London Boards, conveyed through Mr. Plock, I have recently made an inspection trip over the railways of the six Associate Corporations that are controlled and work¬ ed in a common interest by the two London companies you represent, better known in this country as the " Erlanger Sys¬ tem of Railways." v This trip has been made for the purpose of ascertaining the physical condition of the properties of the several companies, their present needs, and prospects for doing a paying business in the future; and for ascertaining the present financial condition, and prospective needs and requirements of each company. The corporate properties so controlled by the London companies, are 1. The Cincinnati, New Orleans and Texas Pacific Railway Company, an Ohio state corporation, that, under a twenty-five years lease, controls the Cincinnati Southern Railway, extending from the city of Cincinnati in the State of Ohio, into and through the State of Kentucky, to the city of Chattanooga in the State of Tennessee, 336 miles in length. 2. The Alabama Great Southern Railway Company, Limit¬ ed, of London, owning or controlling a line of railway extending from Chattanooga, Tennessee, into and through the States of Georgia and Alabama, to Meridian, in 31ississippi, 295 miles in length; of which five miles between Chattanooga and Wauhatchie, 4 in Tennessee, is used under a joint occupancy lease from the Nashville, Chattanooga and St. Louis Railway Company. 3. The New Orleans and North Eastern Railroad Com¬ pany, a Louisiana state corporation, owning a line of railway extending from Meridian, in Mississippi, to New Orleans, in Louisiana, 190 miles in length; three miles between Meridian and New Orleans Junction being temporarily used under a joint occu¬ pancy lease from the Vicksburg and Meridian Railroad Company- 4. The New Orleans, Spanish Fort and Lake Railroad Company, a Louisiana state corporation, owning a line of rail¬ way extending from the corner of Canal and Basinstreets in the city of New Orleans, to Spanish Fort, a pleasure resort on Lake Pontchartrain, six and a half miles in length. i 5. The Vicksburg and Meridian Railroad Company, a Miss¬ issippi state corporation, owning a line of railway extending from Meridian, through the State of Mississippi, to Vicksburg, on the east bank of the Mississippi River, 142 3-4 miles in length. 6. The Vicksburg, Shreveport and Pacific Railroad Com¬ pany, a Louisiana state corporation, owning a line of railway extending from Delta on the west bank of the Mississippi River opposite Vicksburg, through the State of Louisiana, to Shreve¬ port on the west bank of Red River, thence to the west bound¬ ary line of the state, bordering Texas, 189 miles in length. The aggregate mileage of the roads so controlled and oper ated is 1,165 1-4 miles, and the fixed charges for interest and rentals amount to $1,848,400 yearly, which is $1,586.26 per mile of road operated. The actual capitalized cost of these properties as shown by the books of the several companies, not capitalizing the Cincin¬ nati Southern leasehold, and not including floating indebtedness, is as follows: Capital Stock, common. $22,992,100.00 Capital Stock, preferred 5,940,612.72 First Mortgage Bonds 12,050,000.00 Second Mortgage Bonds s..... 1,100,000.00 Income Bonds 5,420,000.00 Total $47,502,712.72 5 Capitalizing the Cincinnati Southern Leasehold on the basis of its fixed rental during the first five years of the lease at rate of five per cent., it will represent $16,240,000 to be added to the capitalized cost of the properties. The inspection trip was made with Mr. John Scott, the Gen¬ eral Manager, in an observation or service car, starting from Cin¬ cinnati and travelling by day-light over the entire system, and we were generally accompanied by the local superintendent, en¬ gineer and road master, as we passed over the different roads. The round trip occupied twelve days, and we stopped an after¬ noon at Chattanooga, four days in New Orleans (delayed in part by the burning of the N. O. and N. E. bridge), part of a day in Shreveport, part of two days in Delta and Vicksburg, and part of a day at Meridian. After passing over each road, I addressed a letter to the general manager calling for specific information in respect to that particular property.* Copies of my letters, and the original letters of the general manager in reply, accompany this report. These papers, with accompanying reports and statements fur¬ nished on my request by the chief engineer and by the comp¬ troller of the company, will, I think, enable the committee to comprehend the status of each company as distinct from the others, and its relations to the system as a whole—and will also help them to determine what is necessary to be done to per* feet the system as an independent working property able to command its fair share of business, and to handle its business promptly and with economy, irrespective of competing and connecting corporations. For the purpose of lessening the labors of individual mem¬ bers of the Committee, I submit a synopsis of these papers as they relate to the several properties and corporations mentioned in this reports ♦See appendix. 6 0 CINCINNATI, NEW ORLEANS AND TEXAS PACIFIC RAILWAY COMPANY. This Company has a paid up capital of $3,000,000, of which $2,092,337.75 is invested in the rolling stock, tools and mach¬ inery now in use on the Cincinnati Southern Railway; and $900,- 958.45 has been expended mainly for improvements of track and roadway, and for bridges, buildings and other betterments and additions to the Cincinnati Southern Railway, that, on expiration of the lease, will revert without compensation to, and is, there¬ fore, a part of the rental charge or cost to this company of, the Cincinnati Southern Railway. The entire capital of the company has, theiefore, been permanently invested in the plant, and its balance sheet on the 31st of August shows current liabilities of $305,123.23 in excess of available or quick assets. The Company holds a lease of the Cincinnati Southern Rail¬ way for twenty-five years from October 12, 1881, the fixed annual rental payments, payable quarterly in money, being as follows: First period of five years, $812,000 per annum. Second period of five years, 912,000 per annum. Third period of five years, 1,012,000 per annum. Fourth period of five years, 1,102,000 per annum. Fifth period of five years, 1,262,000 per annum. In addition to these fixed rental payments, the lessees are required by the terms of the lease, to make certain additions and improvements to the property, that, on expiration of the lease, will revert to thè Cincinnati Southern Company without com¬ pensation. The more important of these improvements and ad¬ ditions are as follows: Substituting masonry arching for timber in 16,450 lineal feet of tunnels; filling in, or replacing with stone or iron, 4,987 lineal feet of wooden trestle work and bridges ; putting in 25 miles of additional side tracks ; replacing with sixty pounds steel rails, 142 miles of track where iron rails and light (55 lbs.) steel rails are now used; completing the block signal improve¬ ment, and ballasting of the road; and constructing station and other buildings and structures as enumerated in the lease. 7 The cost of these improvements will, therefore, be an addi¬ tion to the fixed rental charge, and must be provided for cur¬ rently as the expenditures are made. The following estimates, furnished by the Engineer on my request, will show the amounts to be expended on the Cincinnati Southern Road under the several requirements of the lease, and for additional engines and cars, during October, November and December of the current year, and separately for each of the following years, 1885, 1886 and 1887. SUMMARY OF EXPENDITURES TO BE MADE BY LESSEES OF TIIE CINCINNATI SOUTHERN RAILWAY' UNDER REQUIREMENTS OF LEASE DATED OCTOBER 12, 1881. 1884. 1885. 1886. 1887. Total. Arching Tunnels Rails Side Tracks Ballast, Depots Stock Pens Water Supply Coal Chutes Bridges and Trestles Buildings Tracks in Yards Point Burnside Extension Fencing 18,000 2,000 1,500 15,000 6,000 18,000 197,600 130,116 22,500 15,000 10,000 1,200 7,000 65,000 50,000 21,000 26,666 295,575 108,430 22,500 15,000 8,000 1,000 6,000 7,000 90,000 70,000 26,666 295,575 69,394 22,500 15,000 7,000 800 4,000 40,100 88,500 26,668 806,750 307,940 69,500 46,500 25,000 3,000 17,000 7,000 210,100 214,500 21,000 18,000 80,000 To which add estimated payment forengines and cars 60,500 546,082 73,330 650,171 73,330 569,537 73,330 1,826,290 219,990 Add 5 per cent, for engi¬ neering and contingen¬ cies, 0.05x2,046,280 =... 60,500 619,412 723,501 642,867 2,046,280 102,314 Total $2,148,594 8 t Of this $2,148,594 to be expended on the Cincinnati Southern Railway before the close of 1887, all but $219,990 for equipment, and $18,000]for the Point Burnside extension, are for improve¬ ments and additions required by the terms of the lease, and mak¬ ing them is not optional with the C., N. O. & T. P. Ry. Com. pany. The time alone is not fixed by the lease, except that they are required to be made as renewals and replacements, and as the needs of the company shall require. The General Manager and Engineer report, that, as renewals and replacements the greater portion of the expenditures must be made within the three years covered by the estimates ; and that the arching of tunnels, the steel rail replacements, the filling in or replacement of bridges and trestles, and the expenditures for land, and for additional shop buildings, and track accommodations at Ludlow, cannot prudently be postponed beyond the three years.* The expenditures estimated for, together with those of a similar character made previous to August 31st, amount to $2,829,562, all of which is additional rent, paid and to be paid by this com¬ pany during the first five years of the lease, in excess of the fixed cash quarterly payments; and this increase in the rental charge averages $563,912 for each year during the first period of five years, which is an increase of 68 45-100 per cent, over the nominal cash rental. CINCINNATI SOUTHERN RAILWAY. This road is almost entirely in the State of Kentucky. It extends from the City of Cincinnati, in Ohio, to Chattanooga, in Tennessee, a distance of 336 miles. Of this mileage, 194 mijes is standard track, laid with sixty pound steel rails, and well bal¬ lasted with broken stone ; 82 miles is laid with 53 pound steel rails ; and 60 miles with sixty pound iron rails. The 194 miles of standard track shows a good maintenance, is well ballasted and ditched, and is in first class condition. There has been a good maintenance of the- 82 miles of 53 pound steel rail track, but complaint is made that the rails occa¬ sionally break and cause accidents to trains. The standard pas- Behger engines used on the road weigh 93,000 pounds, and the standard freight engines, the "consolidation," weigh 105,000, See Appendix A., pp. 49-56 $ pounds. As fast passenger and freight trains are run over the road, it is evident from the reports made, that the 53 pound steel rails are too light for the heavy equipment and traffic passing over them, and that they should, he replaced with standard sixty pound steel rails. The sixty miles of iron track is in as good order as any iron track of like character, but the heavy equipment and traffic passing over it, will, it is believed, require its replacement during the next three or four years. Estimates of the cost of replacing both the iron and light steel rails, will be found elsewhere in this report. There are on the line, twenty-seven tunnels, 26,333 6-10 lineal feet in all, of which 16,450 feet are timbered, and according to the report'of the engineer, must be replaced with masonry within the next three or four years. The estimated cost of this work is $806,750. There are 35,907 86-100 lineal feet of bridges and trestles on the road, of which 4,987 feet are of wood, that the engineer reports must be filled in or replaced with stone or iron within three years ; the estimated cost of this work is $210,000. The roadway, generally, is in excellent order, is rock bal¬ lasted, well tied and ditched, and shows a good maintenance. The station, water and other structures on the line, are generally in good condition. At Ludlow, additional ground and buildings are, or very soon will be required for yard and shop purposes, together with additional tools and machinery, the estimated cost of which is $214,500. The general manager reports that additional equipment will be required before the end of 1887, mainly for the accommo¬ dation of coal traffic, and he estimates the cost of such equipment at $466,600. CINCINNATI TERMINAL. In the City of Cincinnati, the main track of the Cincinnati Railway ends in a public highway known as McLean Avenue, at the crossing of Gest Street. From Gest Street, along this avenue,—which is but 100 feet in width—for 4,650 feet to Bank Street, the company has about nine thousand feet of tracks ; lo and a couple of small buildings bave been erected on tbe avenue for freight and passenger purposes ; and this is all the yard and depot ground owned by the Cincinnati Southern Railway Com¬ pany within the city limits, that can, be utilized for railroad pur¬ poses; and these are the only facilities that have been furnished for receiving and delivering passengers and freight for the twelve hundred miles of Southern Railroads that are worked with the Cincinnati Southern Road. It is in this avenue on these tracks, that all the lumber, coal, bark, pig-iron, cotton and other car-load freights for Cincinnati and interior points must be handled, and they are the only tracks north of the Ohio River that can be used by the company for making up trains, for the storage of empty passenger and freight cars, and for other station, yard and dead track purposes. It is reported that the Trustees have purchased a strip of land one hundred feet in width, from Gest Street north to Liberty, about twenty-five hundred feet bordering McLean Avenue on the West side ; also a thirty foot strip along Railway Avenue and to the Cincinnati, Hamilton and Dayton Railway Company grounds, but this land is all, or nearly all, from twenty- five to thirty-five feet below grade, and must be filled before it can be utilized. The engineer's estimate of the cost*of such filling is $144,000, with $36,000 additional for tracks and build¬ ings. This additional property is greatly needed by the com¬ pany, and the Trustees should be called upon to turn it over to the company, and to decide whether the city or the company must assume the cost of bringing it up to grade. Just what the legal rights of the company are under the lease, should be determined by competent counsel without un¬ necessary delay, and when so determined, they should be enforced against the Trustees, as provided in the lease. Because of this want of prpper terminal facilities, it has been found necessary, in order to accommodate the business of the line, to rent from the Cincinnati, Washington and Baltimore Railroad Company part of its freight building and grounds at Second and Park Streets, which are accessible to Cincinnati Southern trains, only by their passing for nearly three miles through city streets, over the tracks of two other railway com¬ panies; its passenger business is accommodated at the Union Depot, Third and Central Avenue, to which access is had for about the same distance through city streets over the tracks of 11 the Cincinnati, Indianapolis, St. Louis and Chicago Railway Company, and the Cincinnati, Washington and Baltimore Rail¬ road Company. The rental, trackage, switching and other charges incident to the occupancy of these passenger and freight properties for the year 1883, amounted to $93,983.06. For the current year, 1884, the General Manager estimates that such expenditures, with others incident to the lack of terminal facilities in the city, will undoubtedly exceed $140,000, all of which are necessary expenditures forced upon the C., N. O. &T. P. Ry. Company, because the Trustees have failed to furnish terminal grounds necessary for the accommodation of the Cincinnati Southern Railway traffic; and this extra charge or expense, is equal to a dividend of four and one-half per cent, on the entire capital of the O. N. O. & T. P. Ry. Co. EARNINGS. The Cincinnati Southern Railway was completed from Cin¬ cinnati to Chattanooga, February 12, 1880, and the earnings and expenses for three years following its completion were as fpllows:— 1881 1882 1883 Earnings $2,344,668.50 $2,570,057.08 $2,596,191.23 Expenses 1,102,409.47 1,653,004.18 1.800,168.03 Net $1,242,259.03 $ 917,052.90 $ 796,023.20 The per centage of Expenses to Gross Receipts was For 1881, 47 2-10 per cent. For 1882, 64 32-100 per cent. For 1883, 69 34-100 per cent. The Gross Earnings per mile of road operated were For 1881, $6,978.00 per mile. For 1882, $7,649,00 per mile. For 1883, $7,727.00 per mile. 12 The fixed rental charge during the first five years of the lease, and until after October 12, 1886, is $812,000 per year, or at the rate of $2,416.67 per mile of road. The expenditures for improvements and additions under re¬ quirements of the lease, together with the rental paid for pas¬ senger and freight accommodations, and for use of tracks in Cincinnati, should be added to show the actual ren,tal cost of the property. i For eight months of the current year, January 1st to August 31st, there was an increase in Gross Earnings of $34,710, or 2 13-100 per cent., with Gross Expenses about the same as the previous year. The Net Earnings for the eight months were $469,675.65, while the fixed rental charge for $541,333.28 for the the same period, showing a deficit of $71,656.63the eight months business. An examination of the Transportation Expenses for the cur¬ rent year, shows that there has been a decrease of $13,932.91 in general expenses. $49,365.77 in repairs of track and roadway (principally ties). $1,813.87 in repairs of buildings. This has, however, been more than offset by an*increase of $14,529.16 in office and station expenses. $32,886.06 in cost of running. $15,819.70 in repairs of engines and cars. $2,100.03 in miscellaneous expenditures. With an increase of 2.13 per cent, in gross earnings, and 1.8 per cent, in engine mileage, the working expenses were one-tenth of one per cent, in excess of the previous year. The Cincinnati Southern Railway is probably the best con¬ structed road in the Southern States. Its standard of construc¬ tion was high, and has been well maintained, and with a suffi¬ ciency of good fuel at different points on its line, it should be operated as cheaply as any other southern road. Excluding the extraordinary expenditures for improvements and additions required by the lease, and with earnings of $7,750 per mile in 1883,1 can see no reason why the working ex¬ penses should not have been under, rather than over, sixty per cent, of the gross revenue. They were sixty-nine and thirty- four one hundredths per cent. 13 ALABAMA GREAT SOUTHERN RAILROAD COMPANY. The line of road of this company extends from Chattanooga ii\ Tennessee to Meridian in Mississippi, 295 miles. Of this mileage, five miles between Chattanooga and "Wauhatchie is owned by the Nashville, Chattanooga and St. Louis Railway Company, but the Alabama Great Southern Company has the right ,to run trains over it for a period of thirty-three years, sub¬ ject to a rental charge of $14,400 per annum. i Of the 290 miles of track owned by the company, 68 miles are laid with steel rails, and 222 miles with iron rails. The esti¬ mated cost of replacing the iron rails with steel is $580,086, and the General Manager reports that this must be done during the next three years. He also reports that an expenditure of $278,000 should be made for shops, machinery, &c., at Chattanooga and Birmingham. In response to my letter of September 24th,* a copy of which is filed with this report, the General Manager has sub¬ mitted an estimate of necessary expenditures required to be made to put this property in good condition, and the amounts that shouldjbe expended during the remaining three months of the current year, and in each of the following years, 1885, 1886, and 1887. The following is a Summary of the estimates given. —* * See Appendix B„ pp.57-03. SUMMARY OF NECESSARY EXPENDITURES FOR PUTTING THE ALABAMA GREAT SOUTHERN RAILWAY IN GOOD WORKING ORDER, PREPARED BY THE CHIEF ENGINEER OF THE COMPANY. 1884. 1885. 1886. 1887. After 1887. Total. Steel in main track... Sidings and yards Ballast . Change of grade Bridges and trestles... Buildings Shops Birmingham & Chattanooga Fencing $13,065 00 7,500 00 9,000 00 22,000 00 32,000 00 18,500 00 $261,300 00 45,000 00 120,000 00 352,500 00 750,000 00 200,000 00 10,000 00 $175,071 00 22,500 00 35,000 00 50,000 00 352,500 00 25,000 00 60,000 00 10,000 00 $130,650 00 22,500 00 25,000 00 52,000 00 235,000 00 10,000 00 $180,000 00 235,000 00 $580,086 00 97,500 00 369,000 00 102,000 00 1,197,000 00 132,000 00 278,500 00 30,000 00 $2,786,086 00 139,304 30 Add 5 per cent, for en¬ gineering and con¬ tingencies $102,065 00 $1,063,800 00 $730,071 00 $475,150 00 $415,000 00 2,786,086 00 Grand Total $2,925,390 30 15 i There is a difference of opinion between the general man- ager and the engineer, as to how fast some of these improve¬ ments should be made. The original estimate of the engineer and explanatory letter from the general manager, are filed with this report for information of the committee.* On my trip over the road, it seemed to be in fair average condition for a road of its class, with ability to handle the vol¬ ume and character of the traffic—which is almost entirely local— that has heretofore been done over it. The maintenance, so far as it could be judged from the cars passing over the line by daylight, seemed up to the average of roads earning less than four thousand dollars per mile—the earnings of the road during the past three years averaged but $3,003 per mile, although for 1883 they were $3,577 per mile. Of Course, the character of business will be changed some¬ what, by the through traffic that is expected to pass over it via Meridian, to and from New Orleans and Texas and points north of the Ohio River and east from Birmingham and Chattanooga. Such business will, however, be nearly all competitive, and must be carried at low rates, and as its diversion from the older established x'outes will be sharply contested, the growth of net revenue from this source must be slow. There should be a steady increase of revenue from the coal and iron traffic on the line, and this will naturally stimu¬ late other local traffic, but I do not think it a wise policy to make any considerable expenditures in advance of requirements for the accommodation of such business, as they can as well be made currently, as the traffic increases in volume. The Company is in need of better shop buildings at Chat¬ tanooga, and of car repair shops and a round house for engines at Birmingham, which should be supplied as soon as possible, and, of course, the cost of replacing rails as they wear out, of ad¬ ditional side tracks and buildings when needed, and generally for maintaining thedntegrity of the property in all its parts, must be met currently as required; but the radical changes proposed in character of the structures, and of the plant generally, that amount practically to reconstructions, should be authorized by the owners of the property before they are undertaken. The estimates call for expenditures for additions and im¬ provements to be made during three years from January next, i *See Appendix B., Pages, 57-63. Í6 aggregating $2,510,390, wliich is $8,656 for each mile of road owned by the company; and this does not include anything for additional rolling stock and motive power. Maturing payments for equipment contracted for and in part delivered, will, to the close of 1887, amount to $278,949.66, and the general manager reports that additional equipment dur¬ ing the same period will probably be required, the estimated cost of which is stated at $695,600. The attention of the committee is especially called to the detailed estimates prepared by the chief engineer, and to the general manager's explanatory letter dated October 12th, 1884, transmitting the same.* The earnings and expenses of the Alabama Great Southern Railway, during three years were as follows: The percentage of expenses to gross receipts was For 1881, 63 89-100 per cent. For 1882, 71 12-100 per cent. For 1883, 71 09-100 per cent. The gross earnings per mile of road operated, were For 1881, $2,676.00. For 1882, $2,917.00. For 1883, $3,577.00. The fixed charges of the company for interest and rentals are $119,400 per year, or $411.40 per mile of road; including in¬ terest on preference shares, the fixed charges are $359,400 yearly, or at the rate of $1,218.30 per mile of road owned. For eight months of the current year, January 1st to August 31st, there was an increase in gross earnings of $50,465, or EARNINGS. Earnings Expenses 1881. 1882. 1883. $789,375 88 $863,418 58 $1,058,763 05 504,331 97 614,042 50 752,679 27 Net 285,043 91 249,376 08 306,083 78 ■* See Appendix B., pp. 57-63. 17 7 72-100 per cent. The expenses, however, show a nominal in; crease of $275,549, or 60 14-100 per cent, over the previous year- in other words, the gross receipts were $687,332, and the work¬ ing expenses $733,709, a deficit of $46,376 on the eight months business, against a surplus of $178,708 for the corresponding period in 1883. An examination of the transportation expense accounts show an increase in every department, as follows : Office and station expense, the increase was $20,205 38 Cost of running, the increase was 82,74^60 General expense, the increase was 26,225 93 Repairs engines and cars, the increase was 34,661 85 Repairs track and roadway, the increase was 82,523 00 Repairs buildings....- 1,190 35 Miscellaneous 2 7^^"/ out a clearly defined plan, in advance, as to what would be re¬ quired. What is known as the " Spanish Fort Property " was pur¬ chased at a cost of $290,000, but it is practically useless now, and will probably be so for some time to come, as a terminal property. Afterwards, what is known as the Compress and Levee Property, on Press Street was acquired, subject to a rental charge of $12,000 per annum. This is a very available and convenient property, and fronts on the Levee which adds to its value, but it is too far from the business centre to enable the company to command a fair share of the city business, without additional facilities for handling such business. In part to remedy this defect, and to secure proper facilities on the Levee front, a City Ordinance was passed granting, to the company the right to lay tracks through certain streets of the city, among which was the right to extend its tracks on Levee Street down the river to the city limits, but no rights were acquired to extend its tracks up the river along Levee Street, towards the business centre. The same ordinance gave to the company an exclusive right of occupancy to 1,000 feet of the Levee batture and wharf on the river between Port and Montague Streets, fronting the company's compress and Levee property. Coupled with these grants were, however, certain conditions, to wit: A.—That the Company construct two and one-third miles of protection embankment, above high water, along the Lake shore from People's Avenue Canal to Spanish Fort, before De¬ cember 9, 1883. The Engineer estimates the cost of this work at $28,000. B.—That the Company, within one year from the comple¬ tion of its road to the river bank, commence the building of three miles of embankments above high water on Florida Walk, the estimated cost of which is $45,000. C.—That the Company pave Levee Street between Laura Street and Poland, with square granite blocks. This work to commence immediately on the company's taking possession of 22 * the 1,000 feet of river front granted by the Ordinance. The engineer estimates the cost of this paving at $75,000. D.—That the Company, on its taking possession of the river f rout, shall replace elsewhere on the Levee as directed by the city officers, the wharves constructed by the city and now on the property granted, the estimated cost of the work being $5,000. It will be noticed that the company is already in default, and that it cannot take possession of the river front until means are first provided for constructing the Florida Walk Embank¬ ment, for paving Levee Street, and for replacing the wharves, as required under its contract with the city. The Lake Shore Protection Embankment is not so pressing, and may eventually not be required at all, but the other requirements will probably be insisted upon by the city authorities. The expenditures nec¬ essary to do this work, will, when made, be part of the cost of the company's city terminal property, and is additional to the estimated cost of improving the Levee front, and for tracks on the levee to the city limits, which amount to $238,000, with¬ out including anything for platforms, and for a freight station for city traffic near the Sugar Exchange. A part of these Levee improvements are very much needed at once, in order to provide necessary facilities for the company to do its river and city traffic, and when completed, they will enable the company to command its full share of the business, which it cannot do now. To overcome, in part, this difficulty of obtaining city busi¬ ness, the company has been paying extra drayage. The General Manager estimates the amount of such extra drayage payments for the current year at $15,450, but in the busy season no amount of extra drayage will command the business, for the reason that the shipping season is short, and the longer haul takes so much more time that it limits the shipping capacity of the merchant, as it is impossible for the company, or for merchants to procure extra drays during the few months in which the sugar and cot¬ ton business is done—in fact, most of the drays are almost en¬ tirely idle for more than one-half the year. EARNINGS. The earnings and expenses of the road from January 1st to August 31st of the current year are reported as follows: Earnings Expenses $245,590.53 281,521.47 35,930.94 Showing a deficit of The General Officers estimate that the traffic for the remaining ^ four months will bring the earnings up to 1425,000, or a little over $2,000 per mile operated. The fixecj charges of the company amounting to $315,000 yearly, are at the rate of $1,607.14 per mile of road operated. For the year 1885, the general manager estimates that the earnings will be not less than $4,000 per mile. It will, however, be difficult to obtain the traffic necessary to produce this revenue, unless the company shall obtain better terminal faci¬ lities in the city of New Orleans for handling coal, cotton, sugar and other river and city traffic. The Balance Sheet of the Company, August 31st, shows cur¬ rent liabilities of $719,357.27, against which the company has quick assets amounting to $316,168.87, leaving a deficit of $403,188.40, which represents the floating indebtedness of the company. In current indebtedness is included the sum of $371,470,24 unpaid coupons, as that amount has been credited to holders of bonds on the company's books. NEW ORLEANS, SPANISH FORT AND LAKE RAIL¬ ROAD COMPANY. The right of way and privileges of the company were ac¬ quired under a City Ordinance passed in August, 1883, and they terminate in twenty-five years from the passage of the ordinance, when the city will have a right to " take the road, rolling stock, equipments, depot and passenger station," at its appraised value. ' The right is also reserved by the city to use the railroad as a main track for other railroads. The road and tracks, as originally constructed, are suitable only for the light engines and cars now in use, and entire recon¬ struction will be necessary before the heavier1 class of equipment used on ordinary railroads can be run over it with safety; and as the only motive power authorized by the ordinance is the " Rem¬ ington Car and Engine," or "Lamm's Thermo-specific Engine," the consent of Council must be first obtained before standard FINANCIAL. 24 i locomotive engines can be used between the lake and Canaí street. The property of this company consists of a double track railroad,—very light rails,—extending from Canal street, on the " neutral ground " in the middle of Basin street, through Basin, Bienville and Bernadotte streets, thence to Spanish Fort a pleas¬ ure resort on Lake Pontchartrain, a distance of six and one-half miles. The company also own the Spanish Fort property with the improvements, about twenty acres more or less in extent. The Spanish Fort is one of three pleasure resorts on Lake Ponchartrain, that during the hot summer months are quite well patronized, all about the same distance from the city. The business of the road is carrying passengers to and from this pleasure resort on the lake. There is no freight business, and the customary charge for a trip ticket to the lake and return is fif¬ teen cents. The depot and passenger accommodation in New Orleans, t consist of a light opep frame building or shed fronting about sixty feet on Canal street, built on what is known as " neutral ground " in the middle of Basin street, and this, with a little ground on the outskirts of the city used for storing cars and engines when not in use, is all the depot grounds and accommodations the com¬ pany own in the city of New Orleans. The original cost of this property was $290,000. The property at this time is valueless to the New Orleans and North Eastern Road as a terminal property, as it is too far from the river and from a connection with other roads, which can only be obtained by consent of the City Council, and at very con¬ siderable cost to the company for additional property. For at least a generation to come I doubt if it can be profitably utilized for passenger business, or in any other way in connection with the compress and levee property now used for terminal purposes. EARNINGS. The company operated the road from July, 1881, to June 30th, 1883, about two years, during which period the net loss was $67,635.45. Since June, 1883, the property has been leased to W. S. Saiter at an annual fixed rental of $6,000 per annum. 25 FINANCIAL. The Capital Stock of the company issued and outstanding is $200,000. The company has also outstanding mortgage bonds to the amount of $300,000. The fixed charges six per cent, on its mortgage bonds, amount to $18,000 per annum. As there is no probability of material improvement in revenue to be derived from this property in the near future, nor of its being made useful as a terminal property, I think the best disposition to be made of it would be to sell or exchange it for other prop¬ erty that can be used for terminal purposes. VICKSBURG AND MERIDIAN RAILROAD COMPANY. The line of road of this company extends from the town of Meridian to the city of Vicksburg, with a branch of two and three-quarter miles to the Mississippi River, in all 142| miles in length. Of these 142| miles of track, 24 miles is laid with steel rails, and the remaining 118f miles with iron rails, of which 33 miles are of the old chair pattern, 47 pounds to the yard, that have been in the track for many years. The estimated cost of replacing the iron rails with steel is $356,362, of which amount the General Manager reports that $259,833 must be expended within three years, or by the end of 1887. The thirty-three miles of old chair rails should be replaced at once, as that portion of the road is very expensive to operate because of liability to accidents from defective track. As part of a through line for Texas business the company re¬ quire transfer facilities at the river. The Engineer estimates that the cost of an incline,—including right of way and cost of land,— for this purpose to the river, suitable for the transfer cf loaded cars, and the cost of one suitable transfer boat. for transferring ,cars, will be $89,000. In reply to my letter of September 6th,* a copy of which is filed with this report, the General Manager has submitted an esti¬ mate of expenditures necessary to be made to put this property in good order, and the amount that should be expended during the remaining months of the current year, and for each of the / years 1885, 1886 and 1887, respectively. The following is a sum¬ mary of the estimates submitted : *See Appendix D, pp. 72-79. SUMMARY OF NECESSARY EXPENDITURES FOR PUTTING THE YICKSBURG AND MERIDIAN RAILROAD IN GOOD WORKING ORDER, PREPARED BY THE CHIEF ENGINEER OF THE COMPANY. 1884. 1885. 1886. 1887. After 1887. Totals, Main track Sidings and yards Ballast Change of grade Bridges aud trestles... Buildings Fencing Transfer $92,235 00 15,000 00 12,325 00 12,435 00 7,700 00 3,000 00 35,000 00 $27,950 00 67,500 00 36,125 00 73,000 00 234,000 00 21,000 00 12,000 00 54,000 00 $55,900 00 15,000 00 28,125 00 73,000 00 234,000 00 10,500 00 3,000 00 $83,850 00 15,000 00 28,125 00 18,000 00 156,000 00 10,500 00 $96,427 50 79,750 00 156,000 00 $356,362 50 112,500 00 172,125 00 176,325 00 792,435 00 49,700 00 18,000 00 ( 89,000 00 $88,322 37 $1,854,769 87 $117,695 00 $525,575 00 $419,525 00 $311,475 00 $332,177 50 $1,766,447 50 Add 5 % for engineer¬ ing & contingencies. 21 I *The original report and estimates of the engineer, with letter of the general manager explanatory of his own views, are filed with this report for information of the committee. The estimates of expenditures for necessary improvements to be made during three years from next December, aggregate $1,522,592, which is at the rate of $10,722 per mile of road owned by the company. The estimates cover $177,000 additional ex¬ penditures to be made after 1887, for thirty-four and one half miles of steel replacement, for ballasting track, and for the recon¬ struction of bridges and trestles. In addition to these expenditures, the general manager esti¬ mates the cost of additional rolling stock {hat will be required before the end of 1887, at $363,700. In passing over the road, I found, with the exception of thirty-three miles where the old chair rails are in track, and that part where a curious system pf ditching and of " trunking " cuts had been originally adopted, that there had been an average main¬ tenance for that class of road, and that it was in reasonable fair condition to handle the volume and character of traffic that it was originally built to accommodate. The principal business is the transportation of cotton, and its other local traffic is light. The gross earnings for 1880, 1882 and 1883, (I could not obtain the figures for 1881), average $3,450 per mile per annum, and for last year, 1883, they were $3,492 per mile per annum. The proposed work estimated for, would, when completed, be a practical reconstruction of the property, changing entirely the character of the road. The replacing of rails must, of course, be made from time to time as the iron rails give out, and the thirty- three miles of old chair iron should be replaced at as early a date as possible. Expenditures for an incline to the river, and for a a transfer boat at Vicksburg are also necessary, and should be made with the least possible delay ; and as the business of the road shall increase, additional side tracks, buildings, etc., will be needed ; and the integrity of .the property in all its parts must, of course, be maintained. Further than this, I do not think that any considerable portion of the work estimated for should be under¬ taken, except currently as the traffic of the road shall increase and require it, unless the owners of the property shall first author¬ ize such a reconstruction, and shall provide the necessary means for that purpose. ♦See Appendix D, pp. 72-79. 28 It is expected that the volume and character of the business to be done on the road, will be materially changed by the new through connections that have been made, and this is doubtless true, but the extent, and revenue value to the company of such increase of business, is a problem still to be solved. The new traffic, however, when obtained, will nearly qll be competitive, and must be done at low rates, and the older established roads that have carried this traffic heretofore will not give it up without a struggle. That the new line will, in time, command its fair share of this business, I have not a doubt, but how fast such new business will come to the road, and how profitable it will be to the company, we shall be able to ascertain only after a sharp conflict with its competitors. As this business shall increase, ad¬ ditional side tracks, building and other structures, and such other improvements as may be necessary for its accommodation, can be made currently as required, and I think this the true policy of the company. Without reference to the policy of changing the guage of all the associate roads, it is very evident that the gauge of the Vicksburg and Meridian Road should be changed at once, and made to correspond with the gauge of the Vicksburg, Shreveport and Pacific Road. To complicate an exceedingly difficult and expensive transfer of loaded cars across the Mississippi river at Vicksburg, by necessitating a change of trucks at that point, will be very embarrassing and very expensive, and besides causing un¬ avoidable delays to freight in transit, it will greatly increase the liability to accidents in making the transfer. The estimated cost of changing the gauge of the main track and sidings (158 miles), and of the equipment owned by the com¬ pany, is $33,235, with $10,000 additional for a hoist at Meridian. I strongly advise that this change should be made at once; and that 33 miles of steel rails to replace old chair iron, be purchased as Soon as possible. RECONSTRUCTION EXPENDITURES. « In response to my request for information, the General Mana¬ ger has made a report, showing the amount received through the reorganization committee, and from surplus income from 1881 to date, and how it has been expended. This report is herewith filed for information of the committee. 29 * The report shows that money was received by the present management, from the year 1881 to the present time, as follows : From the Re-organization committee in cash $494,887.08 From surplus income 215,431.37 1 Total $710,318.45 which amount was specially set apart for reconstruction and im¬ provement purposes, making a little more than $5,000 per mile to be so expended upon the property. The report shows expenditures as follows : For rails $283,261 65 For bridges 89,809 18 For cross ties 87,355 32 For ballast, ditching, widening banks, &c 102,468 06 Total expended on road-bed proper ($4,021 per mile)..$562,892 01 For buildings 27,564 22 For rolling stock 97,628 92 For sundries , 24,555 78 Making the total expenditures $712,640 93 which is at the rate of $5,090 per mile of road. It is difficult to criticise these reconstruction expenditures without knowing the condition of the property in 1881, but the fact that, after expending $5,090 per mile on the road since 1881, eighty-three per cent, of the line, has now iron rails in the track,— twenty-four per cent, being of the old chair pattern ; and that the engineer's estimate of the cost of work necessary to be done within three years to place the property in good condition is $1,522,592, or $10,725 per mile of road, would seem in itself to be a sufficient criticism on the wisdom and economy of the recon¬ struction expenditures made during the three years, 1881, 1882 and 1883. EARNINGS. The earnings and expenses of the Vicksburg and Meridian Road for the past two years were as follows : 1882 1883 Earnings $550,838 93 $495,851 43 Expenses .' '. 374,680 73 354,527 02 Net $176,258 20 $141,324 41 30 The percentage of expenses to gross earnings was For 1882 68 2-100 per cent For 1883 71 5-10 per cent The gross earnings per mile of road operated were $3,880 in 1882, and $3,492 in 1883. The fixed charges of the company amount to $104,000 per annum, or at the rate of $742.85 per mile of road operated. For five months of the current fiscal year, from April 1st to August 31st, there was an increase in gross receipts of $15,725, or 10 per cent. There was also an increase in the working ex¬ penses of $26,825, or lSyW per cent, for the same period ; in other words, the gross receipts were $167,072.38, and the working expenses were $184,232.76, showing a deficit of $7,220.38 on the five month's business, against a surplus of $3,878.64 for the same period in the previous year. An examination of the transportation expense accounts shows an increase in every department but one. There was an increase in office and station expenses of $5,233 84 In cost of running of . 2,954 77 In general expenses of 8,777 09 In repairs engines and cars of 2,196 61 In repairs track and roadway of 5,288 18 In miscellaneous of 2,738 66 Total 27,189 15 The decr'ease in repairs of buildings, was 253 94 which makes the total increase of expenses... 26,935 21 This would show that while there was an increase of but 10t!W Per cent- gross earnings, and 22TyF per cent, in engine mileage, the increase in working expenses was 18-j1^ per cent, during the first five months of the current year. These figures seem to indicate that there has not been an economical administration of the property, and that the large amount of money spent for reconstruction since 1881, has been of little practical use in reducing the cost of maintenance, and of operating the road. FINANCIAL. The balance sheet of the company, August 31st, shows that the current liabilities, on that date, were $295,295, while the avail- 31 able assets were but $74,368.80, a deficit of $220,962, which represents the floating indebtedness of the company on that date. LANDS. The lands of the company were acquired under an Act of Congress approved August 11th, 1856, whereby alternate sections of land in the State of Mississippi were set apart to aid in the construction of railroads. The number of acres patented to the com¬ pany was 198,028 There are also lands in dispute, the title to which is not yet confirmed, to the extent of about 12,000 acres. Total lands covered by the grant 210,028 acres. The number of acres sold is 60,105 acres. which leaves 149,923 acres, of land still owned or claimed by the Company. These lands are, as I am informed, held as security for the third mortgage bonds of the company, but whether any, or if any, how many bonds have been retired by the sales of land, I have been unable to ascertain. It has apparently," taken twenty- eight years to sell 60,105 acres, but as there were no records in Cincinnati showing the amount of taxes paid, nor of the expenses incurred in making the sales, it is impossible to form an opinion as to the profit or loss to the company from this grant. The company's pay-rolls show that there are are employed in looking after the lands, an agent at Vicksburg, with a salary of $2,400 per annum ; another agent at Birmingham, in Alabama, at $600 per annum, and a land attorney at Washington, D. C., at a salary of $500 per annum, making a total of $3,500 per year in salaries, that the company is now paying currently in cash, to look after this property. As to the intrinsic value of the remaining lands I have no means of forming an opinion, but do not understand that they are anything more than agricultural and timber lands, and none are known to be mineral lands. 32 VICKSBURG, SHREVEPORT AND PACIFIC RAILROAD COMPANY. The line of road of this company extends from the town of Delta in Louisiana on the west bank of the Mississippi river opposite Vicksburg, to Shreveport Louisiana on the west bank of Red river, and from thence west to a point in the boundary line separating the States of Louisiana and Texas, a distance in all of 189 miles. Of this mileage, 170 miles only is operated by the company, 19 miles between Shreveport and the State line is leased to the Texas and Pacific Railway Company, and operated as a part of its main line. Of tíie 170 miles operated by the company, 102£ miles are laid with steel rails, and 67£ miles with iron rails of the old chair pattern. These iron rails are in that part of the tracx between Monroe and Delta that was built many years ago, about forty miles of it being subject to overflow of from one to twelve feet nearly every year during four or five months. So soon as this part of the roadway shall be raised above high water, the old iron rails should all be replaced with steel. That part of the line from Monroe west to Shreveport, 97 miles, has been recently constructed, and is all laid with steel. It was completed to a .connection with the Texas and Pacific Rail¬ way, and opened for the exchange of business August 1st of the current year. In response to my letter dated October 6th*, a copy of which is filed with this report, the general manager has submitted an estimate of expenditures necessary to be made to put this prop¬ erty in good order, and also showing how much should be ex¬ pended during the remainder of the current year, and for each of the following years, 1885, 1886, 1887, respectively. This original report,* with estimates of the engineer is filed herewith for infor¬ mation of the committee, but the following summary of the esti¬ mates is given. ♦See Appendix E, pp. 80-86. y SUMMARY OF NECESSARY EXPENDITURES FOR PUTTING THE VICKSBURG, SHREYEPORT AND PACIFIC RAILWAY IN GOOD WORKING ORDER, PREPARED BY THE CHIEF ENGINEER OF THE COMPANY. 1884. 1885. 1886. 1887. After 1887. Totals. old line. new line. old line. new line. old line. new line. old line. nnw line. old line. new line. Main track Ballast Sidings and yards... Raising grade Bridges and trestles. Buildings Shops, Monroe Transfer, Delta $17,582 00 30,000 00 66,000 00 10,400 00 10,000 00 35,000 00 $2,705 00 15,000 00 30,000 00 56,000 00 20,000 00 $81,150 00 7,500 00 360,000 00 40,000 Oo 15,000 00 80,000 00 54,000 00 $15,000 00 15,000 00 46,000 00 • $81,150 00 7,500 00 10,000 00 $7,500 00 $7,500 00 4,600 00 $7,500 00 $300,000 00 228,000 00 $182,587 50 30,000 00 112,500 00 426,000 00 624,000 00 106,000 00 90,000 00 89,000 00 Totals Add 5 per cent, for engineering and contingencies $168,982 00 $123,705 00 $637,650 00 $76,000 00 .$98,650 00 $7,500 00 $12,100 00 $7,500 00 $300,000 00 $228,000 00 $1,660,087 50 8 ,004 37 Grand Total... $1,743,091 87" M Of these expenditures for work to he done, amounting in all to $1,743,091.87, it will be jioticed that the engineer reports that all should be made within the next three years or before the end of 1887, except the replacement of trestles with creos- oted timber the estimated cost of which is $528,000. This leaves $1,215,091.87 to be expended, according to these estimates, for work necessary to be done to put the road in good working con¬ dition; in other words, to complete the road as part of a through line via Shreveport, Vicksburg and Meridian, for Texas, Mexico, and California business to and from eastern and seaboard cities. The Gpneral Manager also reports, that it will be necessary to purchase additional switching engines, and passenger and baggage cars, the estimated cost of which is $52,000. In passing over the road it was evident that the new portion of it had not been completed. For more than one-third of the distance, I am inclined to think nearer one-half, the rails and ties had been laid on the roadway without back-filling and spacing, and without being properly aligned and surfaced, although trains had been passing over the track for from two to four months. Unless this work shall be done before the wet season, the steel rails will be liable to become bent to such an extent that it will be impossible to straightep them, which will make the track per¬ manently uneven and rough. For the older part of the road east from Monroe, entire re¬ construction is necessary. To raise the grade above high water, will, it is estimated, require 860,000 cubic yards of material to be moved, and 15,840 feet of additional bridges and trestles to be constructed, and the Engineer's estimate of the cost of this work is $426,000, all of which should be done before the end of 1885. To this amount should be added the cost of 67£ miles of steel rail replacement, $182,587.59, which should also be made within two years, or by the end of 1886. Until this work is done, every year from February or March to the following August, generally for about five months, the high water between Monroe and the Mississippi river will stand from one to twelve feet in depth covering about forty miles of the roadway, and during such period, that portion of the road cannot be operated at all. The necessity for reconstruction would, therefore, seem to be imperative, if the road is to be worked as part of a through line for Texas, Mexico, Colorado, 35 Arizona, California, and Pacific coast business, in connection with the Yicksburg and Meridian, and other roads east of the Mississippi river. The General Manager reports that he has been authorized to spend $200,000 on this reconstruction, which is all that can be economically spent the present season, but this will not prevent a stoppage of the road when the high water comes next spring. If an additional expenditure shall be authorized, the work of reconstruction can be recommenced in August or September next, and completed before the wet season again sets in, and this is undoubtedly the true policy of the company. EARNINGS. i As the road has only been opened for Shreveport and Texas business since August 1st, there is no data from which to form an intelligent opinion of what the earnings will be. For the month of August they were $26,235, and for September they are reported approximately at $35,321. The Company has, as yet, no facilities for transferring cars t at the Mississippi river. Under the temporary arrangement it notv has, the cost is twenty-five cents for each passenger, and from twenty to twenty-four cents per hundred pounds for freight—equal to a charge of two cents per ton per mile for from 200 to 240 miles of railway haul. It has, therefore, been impossible for the company to do any competitive busi¬ ness, consequently the earnings for the past two months are no indication of what the road will be in condition to earn when its transfer arrangements and through connections are made. The General Manager estimates the earnings during Octo¬ ber, November, and December of the current year at the rate of $4,000 per mile, per annum, and with suitable transfer facilities at the river, his estimate is that for the year 1885, the earnings will not be less than $5,000 per mile of road operated. The nineteen miles of road between Shreveport and the State line, is leased to the Texas and Pacific Railway Company at a yearly rental of six per cent, per annum on $225,000, the agreed valuation of the property, the lessee to pay all taxes and assessments that shall be levied. 56 • • The fixed charges of thç company amohnt to $24*0,000 yearly, or at the rate of $1,270 per mile of road owned by the company. FINANCIAL. The Balance Sheet of the eompany, August 31st, shows that its current liabilities on that day were $339,838.61, while its available assets were but $51,222.27, a deficit of $288,616.34. In addition to this, the books show an indebtedness to sundry per¬ sons for interest on mortgages, in the sum of $640,000, which makes the floating indebtedness of the company $928,616.34. LANDS. The lands of the company were acquired under an Act of Congress, approved June 30, 1856, granting every alternate sec¬ tion of land designated by odd numbers for six sections in width on each side of the road. A considerable portion of the land had} however, been sold by the Government before the grant took effect, consequently the number of acres to be acquired by the company was limited. For that portion of the line between Delta and Monroe, seventy-three miles, vthe company has acquired title from the United States for 353,212 acres, and there is reported as due and unpatented additional land to the extent of 7,784 acres. On the ninety-seven miles between Monroe and Shreveport, the lands were nearly all previously disposed of by the Govern¬ ment, and there only remain 20,652 acres subject to the grant. The Company may therefore be said to own 353,212 acres of land along its line between Delta and Monroe, and to have an equitable title to 20,652 acres additional between Monroe and Shreveport. How many of these lands have been sold by the company, or what disposition has been made of the proceeds, I am unable to state, and I am equally at a loss for information as to the value 37 i of the land. The pay-rolls show that the company has one land agent in Louisiana at a salary of $600 per annum; another at Birmingham, Ala., at a salary of $600 per annum, and a land attorney at Washington, D. C., at a salary of $500 per annum. The agent at Birmingham and the attorney at Washington are the same as those employed by the Vicksburg and Meridian Railway Company, but they receive this additional compensation from the Vicksburg, Shreveport and Pacific Company. i CHANGE OF GAUGE. Included in the system there are 827 miles of railway with a gauge of five feet, extending from Cincinnati south via Chat¬ tanooga and Meridian to New Orleans, and from Meridian west to Vicksburg; and 189 miles additional of road between Delta on the west bank of the Mississippi river, and a point in the boundary line separating the States of Louisiana and Texas, with a gauge of four feet eight and one-half iuches. The question'of chang¬ ing the 827 miles of five feet gauge to four feet eight and one- half inches, is a very important one. Among the papers submitted with this report is one from the general manager, dated October 12th, in which this subject is discussed. Accompanying it is a letter from the chief engineer with an estimate of the cost of making the proposed change of gauge. The attention of the committee is particulary called to these letters and estimates, which include cost of changing the main line, side tracks and equipment, on each of the several roads, including cost of a hoist at Meridian, which is the most convenient place for its location. For the several roads the cost is estimated as follows: For the Cincinnati Southern Railway $101,403 For the Alabama Great Southern Railway.... 92,615 For the New Orleans & Northeastern R'y 66,465 For the Vicksburg & Meridian Railway 32,235 For the hoist at Meridian 10,000 Total $302,718 • It is generally admitted that this change of gauge must be made in the near future. I have already referred in this report, 38 to the advisability of changing the gauge of the Yicksburg and Meridian Road to conform to that of the Yicksburg, Shreveport and Pacific Road and its Texas connections, and am of opinion that it would be best to change the whole system next season, during the summer months when the business i$ lisjht. The expediency of an immediate change of the line between Cincinnati and New Orleans is perhaps an open question, be¬ cause of the large business exchanged with the Georgia roads, but the same reasons do not apply to the proposed change of the Yicksburg and Meridian Road. It would be of advantage to the system if its policy in this respect should be fixed at an early day. There are six railway companies now terminating in New Orleans. Two of them, west of the river, the-Morgan Road and the Texas and Pacific Road extending into Texas; and the Mis¬ sissippi Valley Road from Memphis, and the Illinois Central- Jackson Road, from Cairo, both on the east side of the river, have the standard four feet eight and one-half inch gauge. This leaves the Louisville and Nashville Road and the New Orleans and Northeastern Road alone with a gauge of five feet. If the Louisville and Nashville Company shall change its gauge, and it is reported the managers intend doing so at an early day, it will become necessary to at once change the gauge of this line between New Orleans and Cincinnati, and it is for these reasons that I think the policy in this respect should be fixed as soon as possible. THE MISSISSIPPI RIVER TRANSFER BETWEEN YICKSBURG AND DELTA The Mississippi river transfer is a very ugly problem to solve. The shortest distance across tùe river will be about three miles, and both banks are constantly changing from action of the river, either in cutting away the land, or in destroying the river frontage by accretions from the river deposit, so there is no certainty that permanent work connected with the inclines^ or that the land on which the inclines may be placed, will remain even for a single season. 39 A " cut-off ' made by the river above Vicksburg has de¬ stroyed nearly all the available river front opposite the business part of that city. In the lower part of the city there still re¬ mains a small extent of river front suitable for business pur¬ poses, but how long it will remain apparently dépends upon the permanency of the Government " mattrass improvements " at Delta Point on the opposite side of the river. This remaining available river frontage is limited in extent, and all, or nearly all of it, is owned by a few citizens of Vicks¬ burg, who had the foresight to purchase it in anticipation of the action of the river in practically ruining for business purposes the river frontage opposite the city; and the same parties own the most available land and river frontage on the Delta side. They also own the railroad tracks to and along the levee on the Vicksburg side; also the elevator and wharf-boat ; so that prac¬ tically they have a monopoly in handling the Vicksburg river business, and all transfers across the river between Vicksburg and Delta. These people desire to continue their control of the Vicks¬ burg river and local transfer business, and they would also like to contract to do the transfer work for the railroad companies, for a period of years, and they have made a proposition to this effect, which, with some explanatory papers, and a letter of trans¬ mittal from the general manager, dated October 16, 1884,* is filled with this report for information of the committee. The parties propose to handle the business of the railroad companies on the following terms: They to furnish and operate a suitable transfer boat for car¬ rying loaded cars across the river. To furnish wharf boats and elevators on both sides of the river, and to handle the river business of the railroad companies. To furnish land on both sides of the river for side track and yard purposes. The railroads to build, keep in repair and operate the inclines, to put the cars on and take them off the boat, and to pay a reasonable compensation for the transfer facilities fur¬ nished, based upon the prices paid at other points, say at Mem¬ phis, Arkansas City and New Orleans, the contract to be made for ten years. An alternate proposition was also made, to sell to the rail- *See Appendix F, pp. 87-95. 40 road company the necessary land and river front on both sides of the river for $100,000, the land on the Vicksburg side for $60,- 000 and that on the Delta side for $40,000. This alternate proposition is made very reluctantly, as the parties much prefer, for reasons stated in the correspondence, to make the transfers for the railroad companies under the pro¬ posed ten year contract, as, under such an arrangement, they think there will be less likelihood of interference with their present facilities for handling the Vicksburg local river business^ which, as before stated, is practically a monopoly in their hands. Should it be decided to accept either of their propositions, the specifications and details should be more clearly defined than they are in the proposition and letters that have been submitted. EQUIPMENT. It appears from the general-manager's statement, in re. sponse to my letter of the 6th October, both filed .with this report,* that taking the roads together they have a full equipment for the character and volume of business theyare now doing. For a few weeks during the cotton season the capacity of the compa. nies may be taxed to the utmost, but if there is a prompt loading and unloading of cars and movement of trains, there need be little if any loss of business to the roads from unavoidable delays in handling the traffic. The following is a summary of the rolling stock owned by the 1,265 miles of road belonging to the system. Locomotive engines ' 142 Passenger, baggage, mail and express cars 98 Box cars (including 500 contracted for but not all delivered 2552 Stock cars 377 Coal cars 1679 Flat cars 766 Dump cars • 328 Cabooses 87 Oil tank cars 6 Service cars .30 *See Appendix: G, pp. 96-99. 41 With 142 locomotive engines, 5,380 freight cars, and a pás- senger equipment of 98 cars, a much larger volume of traffic can be accommodated than the several roads in the system have ever yet been called upon to handle, unless it be perhaps for a very few days in November or December, when, as sometimes happens, an exceptional quantity of cotton is offered at the way 1 stations. The statement shows maturing yearly payments for rolling stock, purchased for the several companies, to be as follows: N. O. & N. E. R. R. Co., 1884 to 1889 1449,286 48 Y., S. & P.^R. R. Co., 1884 to 1894 329,342 73 " * " 1884 to 1887 131.160 00 A. G. S. R'y Co., 1884 to 1889 31,730 56 " (500 cars) 1884 to 1889 290,650 00 " (8 locomotives) 1884 to 1887 69,418 82 Total $1,301,588 59 With such an equipment it seems hardly necessary, at this time, to consider the estimates made for additional engines and cars for the different roads, the details of which will be found in Appendix G. GENERAL AND LOCAL ORGANIZATION. The working organization for nearly 1,200 miles of road owned by the six companies that have been brought under one management, has not produced satisfactory results. It appears to be more complicated and more expensive than the volume of traffic and revenues of the several companies warrant. Excep¬ tionally high salaries to general administrative officers require expensive organization in their departments, and lead to corres¬ pondingly extravagant expenditures for local supervision and management, and in all other departments connected with ad¬ ministration. I am of opinion that the average of salaries paid to the gen¬ eral and local administrative officers is too high ; that they are higher than is paid for like service on other roads; and I am sat¬ isfied that the number of such officers, and of the clerical and staff appointments connected with them, can be materially re¬ duced without impairing the efficiency of the service. 42 A list of officers and clerks in employ of tlie company and their salaries, furnished at my reqnest, is filed with this report for information of the committee, and it will, I hope, be carefully examined by the committee. These rolls show that the salaries paid for administrative supervision of this property amount to $530,511 per annum, which is $465.36 per mile of road operated. The amounts paid by the several companies are as follows: Cincinnati, New Orleans and Texas Pacific Railroad Copi- pany, 336 miles, $170,441.88, which is at the rate of $507.27 per mile. Alabama Great Southern Railroad Company, -295 miles, $114,178.56, which is at the rate of $390.40 per mile. Yicksburg and Meridian Railroad Company, 142f miles, $69,061.92, which is at the rate of $483 per mile. Vicksburg, Shreveport and Pacific Railroad Company, 170 miles, $75,241.80, which is at the rate of $442.60 per mile. New Orleans and Northeastern Railroad Company, 196 miles, $101,587.44, which is at the rate of $518.30 per mile. This shows a total of $530,519.60 paid for administrative supervision alone, as the amounts do not include the wages of conductors, brakeraen, engineers, firemen, etc., nor the compen¬ sation to station and other agents and employes of the company. These are seemingly excessive charges for the services per¬ formed. The average is too high for all the companies, and there certainly can be no good reason for so great an inequality in the cost of like service on the different roads, It apparently indicates the absence of a comprehensive, systematic and uniform working organization, both in general and local administration. It would take too much space in this report to state my ob¬ jection to the organization as it now exists, but a careful exam¬ ination and comparison of the rolls of officers and clerks in employ of the several companies will, I think, satisfy anyone that the organizations are too cumbersome and expensive, and that material changes are necessary to secure concentration of responsibility and of accountability in the local organizations, and a more uniform system in the grade and salaries of officers, agents and clerks on the different roads. There is, in my opinion, too much centralization of detail 43 work .at Cincinnati under general officers, and not enough direct responsibility, locally, in the management of the respective prop¬ erties. The result is, that no person, superintendent or other officer, resident on any of the roads, can be held directly respon¬ sible for the condition of the road on which he is employed, or for a faulty working in the various branches of its service; the responsibility and accountability of each officer being limited to the special work or duty with which he is charged. All matters of general and local policy for the six' associate companies that have been brought into the system must, of course, be determined by the general manager; but he should have as little to do with details as is possible, only to the extent necessary to secure efficiency of service and economy in opera¬ tion. It is results that should centre in his office, and whenever results shall show that the working of any of the properties is not satisfactory, he should be able to hold some one person resi¬ dent on the property directly responsible, and through such per¬ son or a successor, be able promptly to remedy the evil. . As at present organized, the general manager personally assumes duties and responsibilities that should properly attach to the office of general superintendent. The chief engineer has direct charge of maintenance of roadway and structures, reporting direct to the general manager, and not to or through the general superintendent, who is thus relieved from responsibility connected with that department of maintenance. In the mechanical department the superintendent of motive power has charge of thç machine, car and other shops, and of the repairs to engines and cars on all the roads, reporting directly to the general manager. The general superintendent is therefore, under such an or¬ ganization, relieved from direct responsibility connected with the maintenance of roadway and of equipment, with the discipline of the men employed In these departments, with the increase and decrease of the force, and with the wages paid, and he cannot be held responsible either for economy or efficiency of service in any department of maintenance and repairs. Ile is, in fact, but little more than a general master of transportation. Locally, the superintendents of the several roads are relieved from responsibility connected with maintenance of roadway and 44 I of structures, by the resident engineers and roadmasters, all of whom report direct to the chief engineer; and of course under such a system the superintendents cannot be held to that direct personal responsibility for the condition of the property, and for that economy in expenditures for maintenance, that properly should attach to the office. In fact the duties left for them to attend to are very little more than those of local masters of transportation. I am satisfied that efficiency of the service would be pro¬ moted by placing all the physical properties in charge of a general superintendent, responsible to the general manager, but with full authority to handle the properties in his charge under gen¬ eral instructions for their maintenance and operation. He should be assisted by an engineer of maintenance of way, who, under his directions, should have the immediate supervision and con¬ trol of maintenance of the roadway and structures, to see that uniformity is preserved, that the standards are adhered to, and that replacements and reconstructions are made when and as re¬ quired, but not to relieve the general superintendent from re¬ sponsibility connected with such maintenance. The headquarters of the General Superintendent should be at Meridian, where the most important shops belonging to the system should be located, and at this point should also be located the chief train dispatcher in charge of trains on all the roads, together with such officers and assistants as the general superin tendent may need to properly handle the several properties in his charge. The general superintendent should be further assisted by local superintendents, who, under his direction and supervision, should be in general charge of all property on and appurtenant to their lines of road; and such local superintendents should be responsible to the general superintendent for maintenance and operation in all branches of the service. Each superintendent to be assisted by a resident engineer or a roadmaster, (not both), who under his directions should have general supervision of the maintenance of roadway and of structures on the line, but not to relieve him from the responsibility of such maintenance. I suggest a resident engineer on each property, because there is one now on each road, in addition to one or more road- musters, and it is in my opinion better to have an engineer instead of a roadmaster, (if he has had the same experience in 45 roadway maintenance), under each superintendent in special charge of roadway and structures, in order that proper records, and the standards of construction, and for "maintenance, may be preserved, and no changes permitted unless properly authorized. Such officer, while having specific duties in charge of mainten¬ ance of roadway and structures, will be practically an assistant t¿ the superintendent; and as the general rules for maintenance and the plans for reconstruction and for new work will be fur¬ nished by the engineer of maintenance of way, uniformity in the character of the work on all the roads will thus be secured, which is very imp oran t. IN CONCLUSION. As there is a separate and distinct ownership of the prop¬ erties that have been brought into the system, the financial ar¬ rangements to be made to provide for the suggested improve¬ ments, must, I assume, also be separate and distinct. I have not, therefore, thought it necessary to summarize the cost of the pro¬ posed improvements that have been estimated for, not even the few that in my opinion should at this time be undertaken ; only, in closing, to name those that I think should receive early atten- tention from the committee. These are » "A." CINCINNATI, NEW ORLEANS AND TEXAS PACIFIC RAILROAD COMPANY. 1. The expenditures for terminal facilities in Cincinnati. 2. For improvements and additions to the Cincinnati Southern Railway Company, under requirements of the lease. « 13." NEW ORLEANS AND NORTHEASTERN RAIL¬ WAY COMPANY. 1. Expenditures for terminal facilities in the city of New Orleans, including the company's liability under the city ordin¬ ance granting the river front. 2. For shops, machinery, etc., at Meridian. 3. For completing work under construction, and perma¬ nently replacing and protecting the bridge trestle on Lake Pont- chartrain, recently injured by fire. 46 " C." VICKSBURG AND MERIDIAN RAILROAD COM¬ PANY. •» 1. Expenditures for changing gauge so as to make the break of guage at Meridian instead of at the Mississippi River. 2. For steel replacement of 33 miles of old chair rails. 3. For transfer facilities in crossing the Mississippi river between Yicksburg and Delta. "D." YICKSBURG, SHREYEPORT AND PACIFIC RAILROAD COMPANY. 1. Expenditures for completing new road between Monroe and Shreveport, including terminal accommodations at Shreve- port, and shops at Monroe. 2. For raising grade of about 40 miles of track above high water, and for 67¿ miles of steel rail replacement on road be¬ tween Monroe and Delta. 3. For transfer facilities in crossing the Mississippi river between Delta and Vicksburg. "E." MISSISSIPPI RIYER TRANSFER. \ 1. Shall a contract be made between the Vicksburg parties who own the land and river front on both sides of the river ? 4 2. Or shall the companies acquire necessary lands by pur¬ chase or condemnation, and control their own transfers ? 3. Or shall an independent company be organized, specially for the purpose of making the necessary improvements, and a contract be made with such company for a period of years ? " U" ALABAMA GREAT SOUTHERN RAILROAD COMPANY. 1. Expenditure for shops, tools, and machinery at Chatta¬ nooga and at Birmingham. 2. For steel rail replacement. 47 "G." CHANGE OF GAUGE. Of 827 miles of main track from Cincinnati, via Chattanoo¬ ga and Meridian, to New Orleans. In the preparation of this report, I have tried to make it a compilation of facts and of information for use of the execu¬ tive committee. I have accepted the reports, statements and estimates fur¬ nished me, generally without criticism, and it has not seemed proper to question, in this report, either the necessity of the im¬ provements and additions to the properties that are called for, nor any of the figures in the estimates of their cost, except in one or two instances, where an opinion is expressed, based upon personal observation while passing over the property. As the various matters shall be brought before the committee for their i action, my opinion will be freely given, but until then, I have not thought it proper to forstall possible action of the committee by an expression of opinion, or in any other way. The criticism in respect to the present working organization, and suggestions as to general and local officers of administration, their number, duties and responsibilities will undoubtedly pro¬ voke unfriendly comment from persons directly interested. Such criticism has been made reluctantly, and will be accept¬ ed by the committee for what it is worth. During the construction of a road, higher prices are often paid for work, and in salaries to officers for general and local supervision, than are ordinarily paid for like service where the work is more permanent. After the completion of such work, when as often happens, construction officers are transferred to permanent ppsitions in the operating department, true econo¬ my requires that the salaries of such officers, unless their cases are exceptional, should be reduced to correspond with those paiji for like service in other departments and on other roads. To suggest a reduction in the number of officers, or in the salaries paid, is never pleasant, but there are times when such a disagreeable duty must be undertaken by some one. This seems to be a case of that kind, and I regret that to my lot has fallen this disagreeable duty. 48 In closing this report, it is proper to state that during the en¬ tire trip, general manager Scott acted towards me with the greatest courtesy, furnishing freely all information that I asked for, and frequently volunteering information that I might other¬ wise have overlooked. That he has valuable qualities as a man¬ ager, and can be of great service to the company in future under a proper organization, I believe ; and I am of opinion that the unsatisfactory results produced under his administration, have been occasioned more from the want of a proper, working organi¬ zation in the first place, and perhaps in part from not having made a more careful reorganization after the construction work was completed, than from any other cause. To the chief engineer Mr. Bousearen, and to the comp¬ troller of accounts Mr. Munro, I am also indebted for infor¬ mation furnished on my request, as well as for valuable sugges¬ tions in respect to matters in their respective departments. Respectfully submitted, FRANK S. BOND. New Yokk, Nov. 2, 1884. 49 / , APPENDIX A. CINCINNATI SOUTHERN RAILWAY. Cincinnati, 34th Sept., 1884. Dear Sir : Will you have the goodness to furnish me with a statement show¬ ing the number of lineal feet of tunnel arching still remaining to be done on the Cincinnati Southern R. R., with an estimate of the proba¬ ble cost of such work. Also an estimate of the expenditures under that head, which it will be necessary to make in October, November and December of the current year. i Also a similar statement for like work during the year 1885. The same during the year 1886, and the same during the year 1887. Also please furnish me with a statement showing the number of miles of steel rail replacement required to relay with steel the iron now in track on Cin. So. R. R., with an estimate of its probable cost ; also, statement showing ¡the probable amount of such expenditure during October, November and December of the current year, and a similar statement for each of the years 1885, 1886 and 1887. Will you also please furnish an estimate covering all other extraor¬ dinary expenditures if other there be, that should be made for account of Cin. So. R. R. under the requirements of the lease during the re¬ mainder of the current year, and for each of the years 1885, 1886 and 1887. What I want is, as carefully prepared a statement as can be made, showing separately the probable amount of extraordinary expenditures .during the three remaining months of 1884, and for each of the years 1885, 1886 and 1887, on account of improvements to the roadway of the Cin. So. R. R. Co. under the requirements of the lease. Also, please furnish me with a statement in detail, showing the gross " amount paid in 1883 for rent of buildings, use of tracks, and for switch¬ ing in the city of Cincinnati, showing separately the total amounts paid the Cincinnati, Washington and Baltimore, and the Cinti., Ind., St. L. and Chicago R. Roads. And also the amount of rental paid to the Union Depot Co., including of course, the wages of joint employees. Yours truly, (Signed,) FRANK S. BOND. To John Scott, Esq., Pres. and Q. M. ho CINCINNATI, NEW ORLEANS & TEXAS PACIFIC RAILWAY COMPANY. Queen and Crescent Route. Cincinnati, 9th Octo., 1884. F. S. BOND, Esq., Cincinnati, Ohio. Dear Sir : Expenditures, Cin. So. R'way. In reply to yours of 24th ultimo, I now beg to enclose you a state¬ ment, giving in gross details the information asked for by your favor as above. Yours truly, ' JOHN SCOTT, Pres. & Geríl Mgr. C. N. O. & T. P. RY. Estimated Capital Expenditure from Oct. 1, 1884, to Dec. 31, 1887. I. Number of lineal feet of arching to be done is 16,450 feet. Es¬ timated cost, $806,750. II. The expenditure under that head for this year will be for tun¬ nel No. 9, which is now under contract. The estimated cost for renew¬ ing that tunnel, which is 1275 feet long, is $56,100.00, and it is estimated that the expenditure for the months of October, November and Decem¬ ber, 1884, will be about $6,000.00 per month, or $18,000.00 for the year 1884. III. For the years.1884, 1885, 1886 and 1887, it is estimated there should be expended : 1884 368 feet $ 18,000.00 1885 4,032 " 197,600.00 1886 6,025 " 295,575.00 1887 6,025 " 295,575-00 16,450 " .$806,750.00 IV. There are at date in the track 60 miles of iron rails, 60 pounds to the yard, At present prices the renewal will cost as under. 1 mile : 95 Tons Steel, 60 lbs. @$35.00* $3,325.00 Nuts, bolts, spikes, washers and fishplates 330.00 Labor 200.00 $3,855.00 Less old material 1,292.00 9 , Cost for one mile $2,563.00 ♦This price is higher than present market price, but it is calculated rails will go higher in three years. 51 $2,563 X 60 = $153,780, which is cost for 60 miles 60 lbs. steel rail. But in addition to the iron rails in the track, there are 82 miles of 53 lbs. Cleveland steel, which is hard, brittle and very unreliable. This should come up. It is quite good enough for use on*our Southern divisions, where climatic influences are not so severe, and it should be worth $25.00 per ton delivered. Taking above cost of 1 mile 60 lbs. steel at $3,855.00. and allowing 53 lbs. steel rail as run, weighing 50 lbs. or 79 tons per mile at $25.00 per ton we get 1,975.00. 1,880.00. 82 miles X 1,880 = $154,160.00 as the cost of replacing the light steel rail with 60 lbs. steel rail, which summarized shows as under : REPLACING. 60 miles iron rail by 60 lb. steel rail $153,780.00. 82 miles light steel by 60 lb. steel rail 154,160.00. Total cost for 60 lb, steel rails $307,940.00. Y. No expenditure under these heads is needed for the remainder of year 1884. YI. It is considered that the rails above enumerated should be re- laid as under : 1885, 60 miles at average cost $2,168.60 per mile $130,116.00. 1886, 50 do do do do 108,430.00. 1887, 32 do do do do 69,394.00. 142 $307,940.00. The average of 142 miles at $307,940 being taken, which is $2,168.60 nearly, because no set programme can now be arrived at as rails will be relaid as occasion may demand, it not being now possible to say exactly which rails will need relaying first. Yll. OTHER REQUIREMENTS may be grouped as under : 1884, Completion of side tracks at Lookout and Dry Ridge $ 2,000.00. 1885, 3 miles side tracks @ $7,500.00 22,500.00. 1886, 3 do do do 22,500.00. 1887, 3 do do do 22,500.00. $69,500.00. BALLAST CHARGEABLE TO CONSTRUCTION TO COMPLETE ROAD. 1884, 1,500 Cubic Yards $ 1,500.00. 1885, 15,000 do do 15,000.00. 1886, 15,000 do k do 15,000.00. 1887, 15,000 do do 15,000.00. $46,500.00. 52 New Depots for requirements of traffic : Dixon, Mason, Har rodsburg Ju., Bishop, Waynesburg, Cedar Grove, Sloan's Valley, Whitley, State Line, Rugby Road, Annadel, Glen Alice; Frays- ville, Rock Creek, Melville, Total 15 @ $1,200.00 each $18,000.00. Enlargement of existing depots 7,000.00. $25,000.00. To be expended as under i 1884 Nil 1885 $10,000.00. 1886 8,000.00, 1887.... : ; 7,000.00. $25,000.00. STOCK PENS AND CHUTES, At 15 Stations @ $200.00 each $3,000.00. To be expeuded as under : 1884 Nil 1885 $1,200.00. 1886 1,000.00. 1887 800.00. $3,000.00. WATER SUPPLY. Additional Reservoirs and Water Columns $17,000.00. To be expended as under : 1884 Nil 1885 ' $7,000.00. 1886 6,000.00. 1887 4,000.00. $17,000.00. COAL CHUTES. Intended at each mine to place them in competition with each other. 7 Coal Chutes @ $1,000.00 each $7,000.00. To be expended as under : 1884 Nil 1885 Nil 1886 * $7,000,00. 1887 Nil $7,009.00. 53 BRIDGES AND TRESTLES. There are still 4,987 feet of wooden trestles and bridges which should be replaced or filled. They are : I. North side of Ohio River Bridge 2,637 feet. II. South do do do 2,350 feet. Estimated cost as follows: filling I. North side as above $91.324.00. II. South side as above 62,190.00. III. South of Somerset being wooden trusses to replace by iron trusses 56,586.00. Total $210,100.00. To be expended as under : 1884 $15,000.00. 1885 65,000.00. 1886 90,000.00. 1887 40,100.00. Total $210,100.00. MOTIVE POWER AND ROLLING STOCK. Engines. Passenger, 4 @ $9,000.00 $36,000.00. Freight, 8@ 8,750.00 70,000.00. $106.000.00. Cars. 12 Passenger Coaches @ $4,500.00 $54,000.000. Box Cars Nil Coal Cars, 500 @$400.00 200,000.00. Flat Cars, 100 @ 350.00 35,000.00. Stock Cars, 100 @ 500.00 50,000.00. Cabooses, 12 @ 800.00 9,600.00. Wrecking Cars, 2 @6,000.00 12.000.00. $360,600.00. These should be provided as necessity requires, the most pressing being Coal Cars. If bought on time, and all before end of 1887, cash payments would be $466,600, of which $15 per cent. =..., $69,990.00 and deferred cash payments on ten years basis at 7 per cent., would be for 3 years, about 150,000.00 $219,990.00 54 SHOPS. Ludlow. Additional land, 13 acres, @$4,000.00= $52,000.00 Grading above land 6,500.00 New Buildings and Additions, and alterations to present buildings 100,000.00 Tools 50,000.00 Oil Houses and Tanks at ends of divisions, three @ $2,000 6,000.00 \ Total $214,500.00 To be expended as under : 1884 $ 6,000.00 1885 : 50,000.00 1886 70,000.00 1887 88,500.00 $214,500.00 TRACKS IN YARDS. Ludlow. 2 miles @ $7,000.00 $14,000.00 Chattanooga, 1 mile @ 7,000.00 7,000.00 Total $21,000.00 To be expended as under : 1884 Nil 1885 $21,000.00 1886 NU - 1887 Nil.'. $21,000.00 POINT BURNSIDE, (Cumberland River). Side track to River ' $18,000.00 T3 be expended as under: 1884 18,000.00 FENCING. 200 Miles $80,000.00 To be expended as under : i 1884 Nil 1885 $26,666.66 1886 26,666.66 1887 26,666.68 Total $80,000.00 55 ~ / SUMMARY—A. Arching Tunnels Rails Side Tracks... > Ballast Depots Stock Pens Water Supply Coal Chutes Bridges and Trestles Buildings Tracks in Yaids Point Burnside Fencing To which add estimated payment for Engines and Cars 1884 $18,000 2,000 1,500 15,000 6,000 18,000 60,500 60,500 1885 $197,600 130,116 22,500 15,000 10,000 1,200 7,000 65,000 50,000 21,000 26,666 546,082 73,330 619,412 1886 1887 $295,575 $295,575 108,430¡ 69,394 22,500 ! 22,500 15,000 15,000 8,000 7,000 1,000 800 6,000 4,000 7,000 90,000 40,100 70,000 88,500 26,666 650,171 73,330 723,501 26,668 569,537 73.330 642,867 Add 5 per cent, for Engineering and contingencies, .05 X $2,046,280= Total. TOTAL. $806,750 307,940 69,500 46,500 25,000 3,000 17,000 7,000 210,100 214,500 21,000 18,000 80,000 1,826,290 219,990 2,046,280 102,314 2,148,594 CINCINNATI, NEW ORLEANS AND TEXAS PACIFIC RAILWAY. Rents of Buildings and Tracks, and Switching Charges in Cincinnati—Year 1883. General Offices—Albany Bnilding $6,600.00 Ticket Office—Ath and Waluut Streets. ~ 600.00 C. I. St. L. & C. R.R.—Grand Central Depot and Expenses. December and part of November 967.26 Use of Connection Track from our Bridge to near Park Street. $250 per month. Interest ) g .-g g. 8# on $5,710.35; cost of same $38.07 per month. As per agreement 11th April, 1881 ) ' C. W. & B. R. R.—Right of Way from Liberty Street to our Bridge, $250 per month. Rent of Depot Grounds j 2nd and Park Street, $1,083.13 per month. Interest on cost of 5 feet tracks, 8# on V 17,477.40 $18,497.91=123.32 per month. As per agreement 16th April, 1880 ) Switching Live Stock to and from Stock Yards, $2.00 per loaded car 5,093.00 Switching Hotel Cars from C. I. St. L. & C. R.R. (C. I. St. L. & C. bear one-half, 50c. per car 91.57 Switching Loaded Cars to and from C. W. & B. trafisfer, exchanged with other Roads,no j oft aa charge for empty cars, $2.50 per car ( " ' Switching Loaded Cars of meat from Stock Yards, $3.00 per car, and l^c. per cwt. excess ) on cars over 2,500 lbs. from 1st Jahuary, 1884, 25c. per ton of 2,000 lbs. for dead freight. > 2,407.94 No car to pay less than $3.00 ) Switching Loaded Cars crossing C, W. & B. track at C. H. & D. crossing, 50c. per car. No [ g ~gg qq charge for empty cars. As per agreement 16th April, 1880 J ' Switching Cars Received at 2nd and Park and delivered to elevator, $1.20 per car 13.582.80 C. H. & D. R. R.— " Loaded Cars handled at their transfer, $2.50 per car. 12,417.75 Total $93,983.06 Rent was raised in January, "84, to $9,600.00 per annum, and in addition we have other offices in the city, for which we paid at rate of $1,620.00 per annum. For General Offices we now pay, per annum, which is divided among all divisions in proportion of pay roll, $10,500 For Ticket Office, we now pay, per annum 1,500 For Freight Oflces, we new pay, per annum 1,800 $13,800 Note. This charge of $967.26 is only for about H months at rate per annum; it would be about $7,750.00 per annum, which latter amounts efforts are now being made to increase. Now obsolete , The above do not include expenses of Steam Hoist and. Transfer of Freight. 57 „ APPENDIX B. ALABAMA GREAT SOUTHERN RAILROAD. I Cincinnati, 26th Sept., 1884. Dear Sir: Will you please have a statement prepared for me, showing the number of miles of iron rails and the number of miles of steel rails in the A. G. S. main track, with an estimate of the probable cost of replacing iron with steel, and in what period of time such replacement must necessarily take place. Will you also have an estimate prepared of the probable amount to be expended under this head during October, November and December of the current year, and a similar statement for each of the years 1885-6 and 1887, touring which period I assume this entire replacement must be made. Will you also have an estimate made, covering other»improvement expenditures necessary to put the road into first-class condition, such as filling in trestles, new side tracks, buildings, etc., which would be properly chargeable against capital, as improvements and additions to the property. I would like this estimate to cover probable expenditures for the three remaining months of the current year, and for each of the years 1885, 1886 and 1887. My object, as you will understand,- is to ascertain the probable amount in money that will be required in excess, or rather outside of the ordinary operating and maintenance expenses, for these and other improvements, if other there be, necessary to be made to the property, during the remainder of the current year, and for each of the following years, 1885, 1886 and 1887. From' the appearance of the machine and other shops at Chat¬ tanooga, it seems to be necessary that considerable expenditure should be made, in the not very distant future, for buildings and additional machinery, etc. These shops would, I assume, be convenient and useful for the entire system of roads. Will you please also have an estimate made of what expenditure you think should be incurred in this direction, and how soon, and how fast these shops should be reconstructed. It is very evident to me that work in them is being done at a very great disadvantage at the present time, and that the Alabama Great Southern Railroad and the other companies require additional facilities Yours truly. (Signed) FRANK S. BOND. To John Scott, Esq., Pres. and G. M. 58 12th Oct., 1884 FRANK S. BOND, Esq., Dear Sir : Expenditures À. G. S. R, R. Replying to your letter of the 26th ult., I beg to enclose you an estimate prepared by the Chief Engineer, showing the requirements of this road, such as are needed to give it a permanent condition as it should possess to ensure its cheap operation, and to enable it to fulfil its share of the duty devolving upon it as a part of the through line. It should be remembered that this road was originally very badly con¬ structed. A great deal too much bridging was erected, grades were short and high, embankments and cuts narrow and side tracks too few, terminal accommodations being also inadequate. Depots, water sta¬ tions and section houses were also in bad condition and not sufficient in number, while shops existed only at Chattanooga. These latter have always been a hindrance, as they were " temporary " when first builtt and are now ready to fall to pieces in a high wind or to burn like tinder from the spark of a passing locomotive. I beg to append some remarks upon the Engineer's estimate: Rails.—The replacement of the iron rails now on the track is a posi¬ tive necessity, and you will doubtless remember the rails you examined on the Road and their condition as well as their liability to break. Side Tracks are a necessity, although not so pressing as rails, and some of this expenditure could be postponed by only increasing side tracks as imperatively needed. Ballast.—$369,000 is a figure upon which I differ in toto from our Engineer. With a 60-lb. steel rail and track well surfaced the laying of ballast can, in my judgment, be almost indefinitely spread out. Note Engineer estimates side tracks as well as Main Line. Change of Grade $102,000.—Should be done as occasion presents, but I would prefer augmenting a section force and have the work done gradually. These are short, high grades, which are not only dan¬ gerous, but they reduce the hauling power of a locomotive over the whole length of its trip. Bridges and Trestles, $1,197,000.—The expenditure of this money, or I might almost say any part of it, is dependent entirely upon the policy intended to be pursued with regard to the maintenance of the Road. The road has nearly nine miles of openings, and when as in the current year renewals fall due, we shall always have such a disturbance of our transportation figures as will cause serious inconvenience. Year 1883 we spent on bridge repairs $33,104.67. In eight months ending August, '84, we have spent $50,676.88, which at that rate will make $76,014 for the year 1884. No matter what decision might be reached I ghould only have the work done as the lives of present trestles expired, and in this way I consider the expenditure might be still further spread out. < 69 Buildings, Depots, $71,000.—The expenditure at Chattanooga, Birmingham and Meredian is needed now. The other items making up the total of $132,000 added to the above, are not so urgent. Shops—Birmingham.—$93,500 are now urgently needed. We have not any facilities at this point beyond a small shanty, and this place being the end of the two divisions should certainly have some provi¬ sion for housing and repairing engines and cars CHATTANOOGA. Land $25,000.00 Remodelling Shops $100,000.00 @ $125,000.00 is of our most urgent necessities, as already frequently explained. Machinery $60,000.00 at is considered we can buy enough for both Chattanooga and Birming¬ ham for this sum. <* The C. N. O. & T. P. R. R. has small shops on their grounds at Chattanooga, but it would never do for the A. G. S. R. R. to place any shops on C. N. O. & T. P. land. Wire Fencing » $30,000.00 Stock killing is ever on the increase, and prices and law suits also in¬ crease. Fencing would be a great desideratum. The future of this road depends upon its gross receipts, which I consider have not increased in the ratio they should. Our rate of prog¬ ress compares badly with other roads, and action should be taken to remove the disabilities which have hitherto operated to keep back the growth of revenue. Yours truly, JOHN SCOTT, General Manager. » 60 CAPITAL EXPENDITURES A. G. S. R. R. Miles of iron rails 222 Miles of steel 68J Total 290¿ Cost of replacing one mile. 95 tons steel @ 35.00 3,325.00 Fastenings » 330.00 Labor ' 220.00 , $3,855.00 Deduct old material, 75 tons old iron 16.00 1,200.00 350 old joints @ 12 c 42.00 -$1,242.00 Net cost per mile 222 miles 2,613.00 1884, 5 miles 13,065.00 1885, 100 do 261,300.00 1886, 67 do 175,071.00 1887, 50 do 130,650.00 $2,613.00 $580.086.00 Sidings and Yards. ( Length of sidings at present Addition required, including yards Cost per mile, including grading. 13 miles $7,500.00... 1884, 1 mile. 1885, 6 do. . '. 1886, 3 do 1887, 3 do 42 miles. 13 miles. -580,086.00 7,500.00 97,500.00 7,500.00 45,000.00 22,500.00 22,500.00 97,500.00 Ballast. \ 290J miles of main track and 58 miles of sidings, less ballasting now done, which is equivalent to about 20 miles of track fully ballasted 328 miles @ 15,000 cu. yds. @ 75c.... ¿884 9,000.00 1885 120,000.00 1886 35,000.00 1887 25,000.00 After 1887 180,000.00 369,000.00 369,000.00 61 Change of Grade To reduce maximum gradient to rJ0. 102,000.00 1884 , Nil. 1885 do. 1886.. 50,000.00 1887 52,000.00 102,000.00 Bridges and Trestles. There are now on the road very ap¬ proximately 46,000 lin. ft. of wood¬ en trestles and bridges to be replaced as follows: lin. ft. I. To be filled 26,200 II. To be replaced with creosoted trestle 15,500 III. To be replaced with iron spans... 4,300 lin. ft. ■ 46,000 I. Cost of filling 26,200 lin. ft 207,000:00 Culverts for same, and repair of old culverts, and protecting ends of embankments 290,000.00 497,000.00 II. 15,500 lin. ft. creosated trestle @ $12.00 186,000.00 III. Replacement of 4,300 lin. ft. of woodpn bridges and trestles with iron spans, masonry for same, and repair of old bridge masonry. Masonry and foundations 292,000.00 Superstructures 222}000.00 514,000,00 1,197,000.00 1884..'. 22,000.00 1885 352,500.00 1886 352,500.00 1887 235,000.00 After 1887 235,000.00 1,197,000.00 Buildings—Depots. Remodelling Depot at Chattanooga for Pas¬ senger Depot $15,000,00 Freight Depot at Chattanooga 5,000.00 Freight and Passenger Depot Birmingham.... 15,000.00 Remodelling Passenger Depot Meridian 6,000.00 New Depots and enlargement of old ones at intermediate Stations 30,000.00 . : 71,000.00 62 61,000,00 Section and Tool Houses 12,000.00 Additional Water Supply :. 13.000.00 Union Stock Pens at Meridian, and additional Pens at intermediate Stations, including lands 15,000.00 Coal Chutes at Birmingham, Woodstock and Chattanooga 21,000.00 1884 $32,000.00 1885.... 75,000.00 1886 25,000.00 1887 Nil. 132,000.00 SHOPS. Birmingham. Grading of grounds bought from Mr. de Bar¬ deleben 8,000.00 Engine House, turn table, repair shops, oil and sand house, office and store room, ele¬ vated tank and pipes, drainage and water closet {Brich Buildings) 85,500.00 Chattanooga. Additional land 25,000.00 Remodelling and enlarging shop buildings... 100,000.00 Machinery for Chattanooga and Birmingham. 60,000.00 278,500.00 1884 : $18,500.00 1885..: 200,000.00 1886 60,000.00 1887 Nil. 278,500.00 FENCING. Material for 150 miles of wire fencing @$200. 30,000.00 1884 1885 $10,000.00 1886 10,000.00 1887 10,000.00 30,000.00 Total $2,786,086.00 Add 5% Engineering and contingencies 139,304.30 Grand Total $2,925,390.30 SUMMARY B.—A. G. S. R. R. ' 1884 1885 teel in Main Track 13,065 261,300 idings and Yards 7,500 45.000 allast 9,000 120,000 hange of Grade ridges and Trestle 22,000 352,500 uildings 32,000 75,000 hops, Birmingham and Chattanooga 18,500 200,000 ßncinor........... 10,000 $102,065 $1,063,800 1886 175,071 22,500 35,000 50,000 352,500 25,000 60,000 10,000 $730,071 Add 5% for Engineering and Contingencies. 1887 130,650 22,500 25,000 52,000 235,000 10,000 $475,150 AFTER 1887. 180,000 235,000 1415,000 TOTAL. 580,086 97,500 369,000 102,000 1,197,000 132,000 278,500 30,000 $2,786,086 $2,786,086 00 139.304 30 Grand total $2,925,390 30 64 APPENDIX C. NEW ORLEANS AND NORTHEASTERN RAILWAY. Vicksbürg, 2d October, 1884. Dear Sir : Will yoti please furnish me with statement showing expenditures necessary to be made to complete the construction and equipment of the New Orleans and Northeastern R. R. If I am not mistaken, you have already informed me that the track is all laid with steel, and what I want to know is, what, if any, addi¬ tional work is necessary to be done to complete the work, and put the road in first-class condition for doing the business naturally tributary to it, and for exchanging business with other roads, including expend¬ itures in the city of New Orleans, required under the city ordinance granting 1,000 feet levee front on the river, and the right to lay tracks withiu the city limits. I would also like an estimate of the probable cost of the paving, embankment, ditching, etc., that the city requires to be done by the railroad company under the ordinance granting to it terminal rights and facilities within the city limits. I would like also an estimate of the probable cost of obtaining any additional terminal property and track facilities in New Orleans on1 or along the river front to near the sugar exchange, that you think neces¬ sary to enable the company to secure a fair share of business into and out of the city. Yours truly, FRANK S. BOND. To John Scott, Esq., Pres. and Q. M. 12th October, 1884. FRANK S. BOND, Esq., Dear Sir : Expenditures N. O. & N. E. R. R. In reply to your letter of 2d inst. I beg to enclose you the chiçf engineer's estimate for the additional expenditures needed on this road. Additional Tracks, $52,500.—These will be sufficient for virtually all time for traffic purposes, the only disturbing element being such side tracks as may be needed for the development of special industries. Repairs of Damage by the two fires and protection to Bridge. $52,000.—This is necessary. The amount includes $12,000 for protec¬ tion work, which will consist of closing the interstices in the floor and covering the whole with gravel or shells. ês Completion of Buildings, $28,500.—Coal chutes, depots, cotton platforms, pens, and water tanks are all needed, although depots may be retarded. Shops and Machinery, $150,000.—For this sum we shall only get moderate facilities, and the work will be done and buildings spaced so as to admit of extensions. Terminal Facilities, New Orleans. $238,000. include I. Wharf. II. Fruit shed. III. Coal elevator. IV. Hoist. V. Transfer platform. VI. Third rail to Sugar Exchange. VII. Tracks on levee front to lower city limits. I. This wharf, $75,000, should be built to enable us to handle river and sea-borne business. Its absence is a severe loss to us. II. Fruit shed, $15,000, is needed on the wharf to enable us to handle import fruit and general merchandise. III. Coal elevator, $100,000. We know we can compete with Pittsburg coal, and our idea is to coal ships both for Gulf ports, points abroad, and also to provide for sugar plantations. IV. Hoist, $10,000, to enable us to transfer cars to Morgan Line. V. Same purpose as above (transfer platforms, $500), to transfer less than car-load lots. VI. Third rail to Sugar Exchange, $15,000, is contingent upon our getting a freight warehouse nearer Canal street. VII. Track on levee front, $22,500. This is a valuable privilege and one which will be of enormous benefit in time to come. We can reach the abattoir (slaughter house) and the very large Chalmette Millst as well as other enterprises. City Requirements, $120,000.—Are concerned with the terminal facilities. As they stand they are onerous, although it cannot well be said they do not represent an equivalent to us, inasmuch as our conces¬ sions, if we can make avail of them, are valuable. The chief engineer's remarks are full and explanatory. Fencing, $90,000.—The road traverses a grazing country and lots of cattle are killed. Stock is rising in value and law-suits Increasing in number. The engineer repeats some figures already forwarded to London, the outcome of which is intended to give a permanent character to the physical features of the road. They are :— First. Filling with earth the north and south approach of Lake Trestle and protecting the same 17| miles $677,621 80 That portion of this trestle which is on land is not creosoted, and it will not be safe io expect a longer life than between five or six years thereof. 66 I Work on the trestle was begun at the end of 1881, so that in 1886 the greater portion of the timber will be five years old. Extraordinary care was exercised in seeing that every stick was of the very best quality, but in any event it would be wise to begin the refilling in 1886. Second. Filling and replacement of other trestles, cul¬ verts, and bridge masonry $672,447 45 Onr engineer's idea is that wherever possible iron bridges should take the place for water-ways of the present wooden structures, and that such bridges should rest on stone abutments in order that the work may be permanent. Also, that where possible, other trestles should be filled, stone or brick culverts being built thereunder. This latter is a feature which must be considered, inasmuch as when the renewal of the large quantity of wooden trestle work on this road falls due, tha expenditure will be so heavy as to swamp the net receipts of the road, even provided that the same be in accord with the most sanguine expectations. Yours truly, JOHN SCOTT, P. and G. M. Cincinnati, Oct. 9, 1884. Completion N. O. & N. E. R. R. JOHN SCOTT, Esq., P. and G. M. Dear Sir : Referring to enclosed letter from Mr. Frank S. Bond, asking in¬ formation as to expenditures necessary to complete the construction and equipment of the N. O. & N. E. R. R., I beg to submit the following Statement : First. The additional tracks necessary to complete the shop grounds at Meridian, the yards at New Orleans, the coal chute tracks at Meridian, Hattiesburg and Slidell, and various spur tracks projected at intermediate stations, will amount to an aggregate length of seven miles, at $7.500 $52,500 00 Second. The repairs and completion of the Lake Pontchartrain trestle is estimated as follows : Permanent repairs, old fire. $6,000 00 Permanent repairs last fire 30,000 00 j Gravel deck protection. 12,000 00 Telegraph lines on approaches 1,700 00 Repairs of track on ,last burnt portion f §|§x95 tons steel, at $35 $2,519 00 270 joints, at 70c 189 00 5000 spikes, at 2£c 125 00 Labor 300 00 Less value of old material, ||fg-x95 tons steel, at $25 $1,800 00 $2,300 00 $52,000 00 67 Third. Completion of Buildings, a8 follows; Coal chutes and platform at Meridian, Hatties- burg and Slidell $18,000 00 Depots— There are at present 16 regular stations without any depots built. Depots of the third class should be at four of these stations and passen¬ ger shelters at the others as soon as practica¬ ble. Four depots at $1,200.. r 4,800 00 Twelve passenger shelters at $175 2,100 00 Additional cotton platforms 1,000 00 Completion cattle pens 500 00 Water tank, Meridian 1,200 00 Roofing over twelve unfinished tanks on the line, at $75 900 00 $28,500 00 Fourth. Shops and Machinery. The cost of the new shops at Meridian, on the cheapest plan of wooden structures, is esti¬ mated at 100,000 00 Machinery 50,000 00 $150,000 00 These shops are an urgent necessity for the sevice of the N. O. N. E., V. & M. and the Southern Division of the A. G. S. R. R. Fifth. Terminal Facilities, New Orleans. The wharfage of our levee front, a fruit and coffee shed on the levee, a coal elevator for the coal¬ ing of steamers, a hoist and transfer platform for the exchange of business with the Morgan Line, are, I think, pressing necessities for the accommodation and development of our traffic. They are estimated approximately as follows : Wharf 1000 line ft $75,000 Fruit shed 300 ft 15,000 Coal elevator I. 100,000 Hoist 10,000 Transfer platform 500 $200,500 00 To this may be added: "A." The cost of a third rail on the Morgan track to the Sugar Exchange, and of sidings in that vicinity if suitable ground can be secured for the delivery of city freight in that locality. $15,000 00 "B" And the cost of a track on the levee front, from Press street to the lower city limits, three miles, at $7,500 ' 22,500 00 $238,000 00 68 Sixth. Fencing. , The large number of cattle being killed on the line jte a very onerous tax on the expenses of operation. It would be advisable to fence the larger part of the road with as little delay as possible. 300 miles of 5-wire fence at $300.... $90,000 00 Seventh. City Requirements.—The obligations imposed by the city in consideration of the right of way granted by it to the Road are : " A." The building of an embankment above high water on the lake shore, from People's Avenue canal to the Spanish Fort. "-B." The building of an embankment above high water on Florida Walk, from its intersection with People's avenue to the lower limit of the city. " C." The paving with square granite blocks of Levee street, from Louisa to Poland street. "A. It is my understanding that this obligation is contingent upon the building of the connecting track between our main line on People's avenue and the Spanish Fort R. R. As the necessity of this connection is not apparent at the present time, I will omit the cost of this embankment from this estimate. " B." This embankment will be three miles in length. The cos" of the same cannot be estimated correctly without knowing its heigth and width, which, under the terms of the ordinance, are to be deter mined by the city engineer. Assuming that it it will be formed by the excava¬ tion of a canal with a dredge boat, it will require about 150,000 cubic yards, which at 30c. will cost $45,000 00 " C." The estimated cost of paving 3300 lin. feet of levee 30 ft. wide with the necessary curbing and iron plate crossing, based on prices at whieh similar work is now being done in New Orleans, is., , 75,000 00 $120,000 00 .Total $731,000 00 I think it is proper to remind you that in addition to the above requirements I have in my report of March 29th estimated the cost of filling all temporary wooden structures and replacing pile piers and abutments with masonry, as follows: Filling north and south approach of Lake Pont- f chartrain and protecting the same 17| miles. .$677,621 80 Filling and replacement of other trestles, culverts and bridge masonry 672,447 45 $1,350,069 25 And that' the filling of the approaches to the lake trestle should be commenced in 1886. * 69 DIVISION OF EXPENDITURES BY YEARS. Side Tracks. 1884 $30,000 00 1885 7,500 00 1886 7,500 00 1887 7,500 00 Terminal Facilities New Orleans. 1884 $48,000 00 1885 190,000 00 1886 - 1887 Fencing. 1884 1885 $30,000 00 1886 30,000 00 1887 30,000 00 City Requirements. 1884 $10,000 00 1885 110,000 00 1886 1887 $52,500 00 Repairs and Completion Lake Trestle. 1884 1 $52,000 00 1885 1886 1887 $52,000 00 Completion of Buildings. 1884 $20,000 00 1885 8,500 00 1886 1887 $28,500 00 Shops and Machinery. 1884 $50,000 00 1885 100,000 00 1886-87 $150,000 00 $238,000 00 $90,000 00 $120,000 00 10' Filling Trestles and replacement of Wooden Trestle Piers and Abutmemts with Masonry. 1884 . 1885 1886 225,874 QO 1887 225,874 00 After 1887 898,321 25 $1,350,069 25 Grand Total : $2,081,069 25 Yours truly, G. BOUSCAREN, Chief Engineer. SUMMARY C.-N. O. & N. E. R. R. 1884 1885 1886 1887 AFTER 1887. TOTALS. Side tracks and yards i 30,000 00 52,000 00 20,000 00 50,000 00 48,000 00 7,500 00 7,500 00 7,500 00 52,500 00 52,000 00 28,500 00 150,000 00 238,000 00 90,000 00 120,000 00 1,350,069 25 Repairs and completion of lake trestles.... Completion of buildings 8,500 00 100,000 00 190,000 00 30,000 00 110,000 00 Shops and machinery Terminal facilities, New Orleans Fencing 30,000 00 30,000 00 City requirements. 10,000 00 Filling trestles and replacement of wood¬ en trestle piers and abutments with masonrv.. .... .. 225,874 00 s 225,874 00 • ••••••• • • • • 898,321 25 Totals $210,000 00 $446,000 00 $263,374 00 $263,374 00 $898,321 25 $2,081,069 25 I 72 APPENDIX D. VICKSBURG & MERIDIAN RAILWAY. Cincinnati, 6th October, 1884. John Scott, Esq., P. & G. M. Dear Sir: V. & M. R. R. 1 Will you please furnish a statement of the number of miles of steel rails now laid on the 140 miles of the Vicksburg and Meridian Railroad, also the number of miles of iron rails now in the track, and of the iron rails, how many miles are of the old chair pattern. Also please furnish me with an estimate of the probable expendi¬ ture for steel rail replacement during October, November, and Decem¬ ber of the current year, and for each of the years of 1885-6-7. i Will you please furnish me with an estimate of the necessary ex¬ penditures properly chargeable against capital, during each of the four periods of the time above named, such as for additional side-tracks, station and other buildings on the line, for shops and for machinery, for land on the levee and river front at Vicksburg for additional tracks, together with the cost of such additional tracks, and of an incline plane to the river, suitable for the transfer of cars by boat to Delta. Also the expense of a hoist and other facilities necessary for changing trucks, in case you should think best to make such changes on the east, instead of the west bank of the river. If there are any other expenditures of a similar character required, please include them also in your estimates. Will you also give me an estimate of the probable cost of changing the gauge of the line between Meridian and Vicksburg, and for neces¬ sary expenses at Meridian for a hoist, in case it should be decided to have a continuons guage from Meridian west to a connection with the Texas and Pacific Railway. Yours truly, (Signed) FRANK S. BOND. r¿ VICKSBURG AND MERIDIAN RAILWAY. Cincinnati, 12th October, 1884. F. S. Bond, Esq., - , Cincinnati, 0. Dear Sir: Capital Expenditure V. & M. R. R. In reply to your letter of the 6th inst., I beg to enclose you an esti. mate from the chief engineer showing the needed requirements on this road. I beg to append my remarks thereon. Rails, $356,862.50.—There are in the track at the present time about 33 miles of old iron chair rail, which should absolutely be taken up at once. The engineer estimates at the end of 1887, 93 miles of rail to come up, including the. 33 miles of chair rail, and after 1887 he gives 34i miles. These figures have my full sanction, as the amounts called for, viz. : Ten (10) miles in 1885, twenty (20) miles in 1886, and thirty (30) miles in 1887, are a very little above the normal needed on a road doing such business as this road will do. It is possible, however, that the rails may wear better than now anticipated, in which event, of course, the relaying would be retarded. Sidings and Yards, $112,500.—This road has been poorly equipped in the way of side-tracks, and I consider we should have at stations and in yards fifteen (15) miles additional. Ballast. $172,125.—The engineer estimates both for main line and side-tracks. Viewing the character of the country, I consider with a road of 60 lbs. steel rails, this expenditure may be almost indefinitely pro¬ longed. Change op Grade, $176,325.—This road also possesses many title grades, which are high, and thus tend to reduce the hauling power of a locomotive. In addition thereto, I would remind you of the very extraordinary engineering of our predecessors, who by making drainage ditches on the top of their banks and trunking their cuts, left us a most unhand, some legacy. Bridges and Trestles, $792,435.—This item of expenditure, as in the case of the Alabama Great Southern Railroad, depends entirely upon the view taken as to the policy to be pursued in maintaining the road. It has about five (5) miles of openings, and as bridges last only about five (5) years in this section, the receipts of the road are subject to considerable disturbance when renewals fall due. n Large sums of money were expended in renewing bridges in 1881 and 1882, and it would be well to have the policy to be pursued decided upon well before these bridges must be renewed in their order. Buildings, $49,700.—I am inclined to consider this figure some¬ what too small, for I anticipate a very considerable increase in the busi¬ ness of the road. Fencing, $18,000.—On this road also we will kill large quantities of stock, thereby arousing much bad feeling, litigation, and expense. sTranseer at Vicksburg, $89,000.—I make no comment on this figure at the present, inasmuch as the subject will form a separate com¬ munication from me. Yours truly, JOHN SCOTT, Y. P. & G. M. 75 CAPITAL EXPENDITURES V. & M. R. Ë. Rails in Main Track. Irqp chair rail, 47 lbs. very old .. 33 £ miles. Iron fish-joint, 50 lbs. 1868-'81... 10£ " 56 lbs. 1881-82,.. 72| " Steel " 50 lbs. 1877-'81... 8| " " 56 lbs. 1877-82... 15J 140 miles. ' yicksburg extension to river. Iron fish-joint 2f " Total . * 142| miles. It would be highly advisable to take up the whole of the iron rail as soon as possible, but as a good deal of it was laid in 1881 and since, the period for relaying the track is ex¬ tended, in this estimate, to read " After .1887." The road-bed of this division is of poor material, and as a heavy traffic must ensue from its Texas connections, Mogul engines must be placed on the road. They are hard on iron rails, and experience on other divi¬ sions, shows that iron rails under Mogul en¬ gines soon wear out. The present engines toddling along with twelve freight cars are entirely obstructive to economical operation. The entire length of track should be re- laid with 60 lbs. steel rail, excepting the 5£ miles of 56 lbs. steel. Average weight of old rails, with 15$ off for wear is 45 lbs., very nearly correspond¬ ing to 70 tons per mile. Cost of replacing one mile of track with 60 lbs. steel. 95 tons steel @ 36.00... $3,420.00 Fastenings 330.00 Labor 220.00 $3,950.00 Deduct old material. 70 tons old material @ 16.00 1,120.00 350 old joints @ 10c 35.00 1,155.00 $2,795.00 76 Replacing 118f of 47 lbs., 50 lbs., and 56 lbs. iron, and 8£ miles of 50 lbs. steel. 127^ miles @ $2,795 1884, 38 miles 92,235.00 1885, 10 " 27,950.00 1886, 20 " 35,900.00 1887, 30 " 83,850.00 After 1887, 34£ miles 96,427.50 Sidings and Yards. 15 miles additional sidings needed at Vicks- burg and- intermediate stations @ $7,500.00 1884, 2 miles 15,000.00 1885, 9 « 67,500.00 1886, 2 " 15,000.00 1887, 2 " 15,000.00 Ballasting. Ballasting main track 140 miles. Yicksburg extension 2f " Sidings and yards 22J " 165 miles. Less ballasting now done, evuiva- lent to about. 12 (( Total 153 miles'. 153 miles @ 1,000 cu. yds. @ 75c 1884 Nil. 1885, 32» miles 36,125.00 1886, 25 " 28,125.00 1887, 20 « 28;125.00 After 1887, 70 miles v . 89,750.00 Change of Grade. Reducing gradients to the milling maximum of x£ïï, raising grade above high water, and widening narrow cuts to secure drain¬ age and keep track clear of sliding mate¬ rial 1884 12,325.00 1885 ' 73,000.00 1886 73,000.00 1887 ' 18,000.00 356,362.50 112,100.90 s 172,125.00 176,325.00 77 Bridges and Trestles. There are now approximately 26,283 lin. ft. of wooden trestles a,nd bridges on the line to be replaced as foilows: I. 18,000 lin. ft. trestle to be filled. 310,000 cu. yds. 30c 93,000.00 Culverts for same ; repair of old culverts and protection of em¬ bankments 240,500.00 333,000.00 II. Renewing 5,095 lin. ft. of trestle with creosoted trestle @ $12.00 61,140.00 III. Replacing 3,188 lin. ft. wooden trestles and bridges with mon spans. Masonry foundations and protec- _ tion 185,500.00 Superstructure T 212,295.00 397,795.00 792,435.00 1884 12,435.00 1885 234,000.00 1886 234,000.00 1887 156,000.00 After 1887 156,000.00 792,435.00 Buildings. ' Passenger depots at Vicksburg and Jackson, and freight depot at Meridian 18,000.00 New depots and additions to old depots at in¬ termediate stations 10,000.00 Section and tool honses 7,000.00 Cattle pens 1,400.00 Additional water stations, including 2 water , i tanks at Jackson and mile 103, and dams and reservoirs at Clinton, Spears' Forest and Bolers 10,800.00 O ne turn table at Jackson 2,500.00 49,700.00 1884 7,700.00 1885 ' 21,000.00 1886 10,500.00 1887 10,500.00 49,700.00 Fencing. Material for 90 miles of wire fencing @ $200 18,000.00 1884 3,000.00' 1885 12,000.00 1886 3,000.00 1887 18,000.00 78 Transfer at Vicksburg. One incline and cradle 25,000.00 One transfer boat 50,000.00 Right of way for incline 10,000.00 Grading for tracks 4.000.00 89,000.00 This estimate is based on the assumption that two boats will be used for the transfer, which I think will be necessary to avoid delays from accidents and from the long fer- ryage (3 miles) between Delta and Vicks¬ burg. 1884 35,000.00 1885 i 54,000:00 1886 1887 89,000.00 Total 1,766,447.50 Add 5 per cent, for engineering and contin¬ gencies 88,322.37 Grand total $1,854,769.87 Have not estimated on a hoist at Vicksburg, as I think it advisable to change the gauge of the V. & M. R. R. and erect a hoist at Meridian. The estimated cost of this hoist is included in my estimate of the cost of changing the gauge of the V. & M. R. R. SUMMARY D.—V. & M. R. R. ' 1884. 1885. 1886. 1887. After 1887. Totals. Main Track Sidings and Yards Ballast Change of Grade Bridges and Trestles Buildings $92,235 00 15,000 00 12,325 00 12,435 00 7,700 00 3,000 00 35,000 00 27,950 00 67,500 00 36,125 00 73,000 00 234,000 00 21,000 00 12,000 00 54,000 00 55,900 00 15,000 00 28,125 00 73,000 00 234,000 00 10,500 00 3,000 00 $83,850 00 . 15,000 00 28,125 00 18,000 00 156,000 00 10.500 00 $96,427 50 79,750*00 156,000'ÓÓ $356,362 50 112,500 00 172,125 00 176,325 00 792,435 00 49,700 00 18,000 00 89,000 00 Fencing Transfer Add 5 % for engineering expenses and contingencies $177,69 00 $525,575 00 $419,525 00 $311,475 00 $332,177 50 $1,766,447 50 $1,766,447 50 88,322 37 $1,854,769 87 80 APPENDIX E. VICKSBURÖ,, SHREVEPORT & PACIFIC RAILWAY. Cincinnati, 6th October, 1884. John Scott, Esq., Prest. & G. M. Dear Sir : V.5 S. & P. R. R. A,s I understand from you, the Vicksburg, Shreveport & Pacific Railroad is, 170 miles long, extending from Shreveport to Delta, La., on the Mississippi River, opposite Vicksburg ; of this mileage, 97 miles between Shereport and Monroe have been re¬ cently, constructed under your administration, and is laid with steel rails, the remaining 72 miles between Monroe and Delta being laid with old chair iron rails, from 42 to 46 pounds per yard, which have not been renewed since they were originally laid in 1854-56. This older portion of the road has had comparatively little use, as I understand that from February or March in each year to the following August, between five and six months, about 40 miles of the track has, every year, been from one to eight feet under water. Will you have the kindness to correct me if I am wrong in any of these statements. To put these 170 miles of road in good working condition will require a considerable expenditure for 'surfacing and putting up the new track, and for additional land for buildings, tracks, and other terminal facilities at Shreveport, as well as for addi¬ tional side-tracks and station buildings on the line. Also for ad¬ ditional land for tracks and for divisional shops at Monroe. A considerable expenditure will also be required for raising the roadway between Monroe and Delta above high water, and for replacing with steel rails the 73 miles of old chair iron rails now in use, and also for land at Delta and-on the river front for ter¬ minal purposes, suchas depot buildings, transfer sheds and plat¬ forms, and for an incline to the river suitable for the transfer of cars by barge or boat. Also for a hoist and necessary tracks for extra trucks on the west bank of the river. Will you please furnish me with an estimate of the probable, cost of this work, and of these additions to the property, and of any other work necessary to be done that would be properly chargeable against capital, making the returns in such form as to show the probable expenditures under separate heads for the dif¬ ferent classes of work during October, November, and December of, the current year, and for each of the years 1885-6-7. Will you also advise me how many miles of track between Shreveport and the boundary line of Texas owned by the V., S. & P. R. R. Co. are leased to the Texas & Pacific Railway Com¬ pany, and, in brief, what are the terms of the lease. Yours truly, (signed) FRANK S. BO.ND. si 12th October, 1884. Frank S. Bond, Esq. dear Sir : Expenditures, V., S. & P. R. R. In reply to your letter of the 6th inst., I beg to enclose the chief engineer's estimate on the further requirements of this road, and to append my remarks thereon. i Rails, $182,587.—Of this the old line Delta to Monroe calls for 67£ miles $179,882.50, and the tracks west of Shreveport needs $2,705« Having seen the pld chair rail, you know its condition as well as I do. I would not advise laying new steel, however, until the grade be raised. Completion of Ballasting and surfacing new road, $30,000, is right. Sidings and Yards, $112,500.—This road will do a heavy business, and it should be amply supplied with side-tracks. Raising Grade Old Road, $426,000.—You know the neces¬ sity for this. I have an appropriation of $200,000 from London for this purpose, but it is difficult to decide how best to do the work. If the grade be raised from one end to the other to the needed height, then must half the work be left undone, and the road will be stopped as effectually as if no work had been done. If the $200,000 be spread overall of the low places, then an ordin¬ ary flood will cover the road, stop the trafic, and much of the ma¬ terial must be lost. Even beginning early in the season, and with ample funds, it would require very hard work and several con¬ tractors to get the grade raised in one season. Bridges and Trestles, $624,000, includes reconstruction. Old Line—Tensas. Bayou Bœuf. Bayou Mason.., $40,000 these drawbridges not being able to carry heavy engines. Completion Red River Bridge, being for protection on levee, not yet estimated to contractor, $40,000. Balance due contractor for completion wooden trestles west of Monroe, $16,000. Renewal of all trestles with creosoted timber to make them permanent, $528,000, but this can be delayed for several years, as stated by Engineer. Buildings.—Terminal facilities at Delta, $14,000, are needed. New Depots and remodelling old depots between Delta and Monroe, including Monroe, $15,000, are needed, Section and Tool Houses, between Delta and Monroe, $5,000, are needed. Three Water Tanks, between Delta and Monroe, $6,000, are needed. Terminal Eacilities, Shreveport, $55,000, are needed. Completion of Depots between Monroe *and Shreveport, $5,000, and completion of section and tool houses, $5,000, are needed. éá \ Shops at Monroe.—Buildings and grounds, $60,000; machin¬ ery, $30,000 are needed, and, for this sum the road will not be any too well equipped, Transfer at Delta, $89,000.—I make no comment on this figure, inasmuch as the. subject will form a separate communica¬ tion. Looking at this road generally, there can be no doubt that we shall do a very large business thereon when once provided with the required facilities. The indications for business, up to the present time, are ex¬ ceedingly good, although we have unfortunately had tó decline a very large quantity of business, in consequence of not having the means to handle the same. Yours truly, JOHN SCOTT, . Y. P. & G. M. CAPITAL EXPENDITURES V. S. & P. R. R. r Main Track. The condition of rails in main track is as follows: Between Delta and Monroe. Iron. Steel. 26 miles, 66 lbs. 6 miles, 60 lbs. 3n " 48 " b « 54 " 3 « 64 " Between Mon¬ roe & Shreve- port from Shreveport to top of grade where yard will be lo- • cated 1 " 56 " 96 " 60 " Total 67|- miles. 102| miles. All the iron rail, most of which is laid with the old pattern chair, should be replaced as soon as pos¬ sible. ' Cost of replacing one mile. 95 tons steel @ 36.00. .. 3,420.00 Fastenings... 320.00 Labor 200.00 $3,940,00 83 Deduct bid material. 75 tons old iron @16.00 1,200.00 350 old joints @ 10c 35.00 1,235.00 Net cost per mile 67miles @ 2,705.00 Old Line. New Line. 1884 17,582.50 2,705.00 1885 81,150.00 1886 81,150.00 1887 Nil. Nil. $179,882.50 $2,705.00 Completion of Ballasting and Surfacing new road 1884 15,000.00 1885 15,000.00 1886 Nil. 1887 " Sidings and Yards. About 8 miles are needed at once, and 7 miles additional should be provided in the next three years to accommodate the increased traffic. 15 miles @ 7,500.00 1884 30,000.00 30,000.00 1885 7,500.00 15,000.00 1886 7,500.00 7,500.00 1887 7,500.00. 7,500.00 $52,500.00 $60,000.00 Raising Grade—Old Road. Embankment, 860,000 cu. yds. @ 40c ... New water ways and remodelling of old water ways 1884 66,000.00 1885 360,000.00 1886. Nil. 1887 " Bridges and Trestles. The two 105 foot spans, combin¬ ation trusses over Tensas River, and the two wooden dams, 155 spans, over Bayou Bœuf and Bayou Mason on the old road, are too weak to 2,705.00 $182,587.50 182,587.50 30,000.00 30,000.00 112,500.00 112,500.00 344,000.00 82,000.00 426,000.00 426,000.00 84 carry ordinary engines, and en¬ tirely unsafe for heavy locomotives. They should be replaced without delay. There are about 25,000 lineal feet of wooden trestle work between Delta and Monroe and almost 19,000 lineal feet between Monroe and Shreveport. These trestles should be renewed with creosoted timber to make them permanent. But this can be postponed several years. Reconstruction of Tensas R. Br... 15,000.00 Reconstruction of drawbridge over Bayou Bœuf and Bayou Mason.. 25,000.00 Completion of Red River bridge (being amount not yet estimated to contractor that will be due on fin'al estimate *.... 40,000.00 Completion of wooden trestles west of Monroe (being amount not yet estimated to contractors that will be due on final estimate 16,000.00 Renewal of 44,000 lineal feet of trestle with creosoted timber at 12.00 Old road 25,000 lin. ft, 12.00.. 300,000.00 New road 19,000 lin. ft., 12.00.. 228,000.00 Old Line. New Line. 1884 56,000.00 1885.. 40,000.00 1886 1887.. ........ ........ After 1887. 300,000.00 228,000.00 624,000.00 340,000.00 284,000.00 Buildings.—Terminal Facilities at Delta. 4-stall engine house and turntable 62,00.00 Coal platform ..... 800.00 Freight depot 4,000.00 Passenger depot 3,000.00 624,000.00 14,000.00 New depots and remodeling old depots between Delta and Mon¬ roe, including depots at Monroe.. 15,000.00 Section and tool houses between Delta and Monroe .5,000.00 3 water tanks 6,000.00 Total for old road 40,000.00 85 Terminal Facilities, Shreve- , port. Including 8-stall engine house, turn table, water supply, passenger and. freight Repots, transfer platform and grounds 55,000.00 Completion of depot between Mon¬ roe and Shreveport. 5,000.00 Completion of section houses and tool bouses between Monroe and Shreveport ■ 6,000.00 Total for new line 66,000.00 Old Line. New Line. 1884 10,400.00 20,000.00 1885 15,000.00 46,000.00 1886 10,000.00 1887 4,600.00 40,000.00 66,000.00 106,000.00 Shops at Monroe. Shops, buildings and grounds 60,000.00 Machinery 30,000.00 90,000.00 Old Line. 1884 10,000.00 1885 80,000.00 1886 1887 90,000.00 Transfer at Delta. One incline 25,000.00 One boat , 50,000.00 Right of way 10,000.00 Grading 4,000.00 89,000.00 Old Line. 1884 35,000.00 1885 54,000.00 1886 1887 89,000.00 Total 1,660,087.50 Add 5 per cent, engineering and con¬ tingencies 83,004.37 t Grand total 1,743,091.87 I SUMMARY E.—V. S. & P. R. R. • 1884. 1885. 1886. 1877. After 1887. TOTAL. OLD LINE. NEW LINE. OLD LINE. NEW LINE. OLD LINE. NEW LINE. OLD LINE. NEW LINE. OLD LINE. NEW LINE. Main Track $17,582.50 $2,705.00 15,000.00 30,000.00 $81,150.00 4 $81,150.00 . $182,587.50 30,000.09 112,500.00 426,000.00 624.000.00 106,000.00 90,000.00 '89,000.00 Ballast $15,000.00 15,000.00 • Sidings and Yards.. Raising Grade Bridges and Trestles Buildings Shops, Monroe 30,000.00 66,000.00 10,400!00 10,000.00 35,000.00 7,500.00 360,000.00 40,000.09 ' 15,000.00 80,000.00 54,000.00 7?500.00 $7,500.00 $7,500.00 $7,500.00 56,000.00 20,000.00 $300,090.00 $228,000.90 46,000.00 10,660.06 4,600.00 Transfer, Delta Totals . $168,982 50 $123,705.00 $637,650.00 $76,000.00 $98,050.00 $7,500.00 $12,100.00 $7,500.00 $300,000.00 $228,000.00 1,660,086.50 $83,004.37 1,743,091.87 Add 5 per cent, for Engineering and Contingencies Grand Total 87 APPENDIX F. Cincinnati, October 6th, 1884. John Scott, Esq., Pres. and G. M. Dear Sir: TRANSFER ACROSS MISSISSIPPI RIYER. ¡\Vith reference to transfer facilities across the Mississippi River at Vicksburg, I shall be obliged if you will furnish me with the substance of any proposition that has already been made, or that shall hereafter be made to do this work; or any proposition covering the sale of neces¬ sary lands at Yicksburg and at Delta, including of course a sufficient frontage on both sides of the river to accommodate the business to be exchanged between the V. S. & P. and V. & M. roads. As I understand it, the present cost of transfer to the Companies is 25c. per passenger, and from 20c. to 24c. per 100 lbs. for freight. That these charges are shared by three distinct compauies or parties. 1st. The Vicksburg Street R. R. and Land Co. who own the tracks on the levee, together with all the available river front on both sides of the river, as well as the available lands necessary for platform, etc., on the levee. 2d. The steamboat that carries the passengers and freight across river; and 3d. The owners of the wharf boat on the Delta side, who raise the freight from the wharf boat to the depot building. This transfer charge amounts to from $80'.00 to $96.00 per car load of 40,000 lbs., and is equal to a 2c. per ton per mile rate on from 200 to 240 miles of railroad. For all competitive freight, and for sucb bulky and heavy freights as coal, lumber, iron, cattle, and cotton, such a charge is, of course, absolutely prohibitory. Whatever arrangements may be made temporarily, I assume that the Vicksburg and Meridian, and the Vicksburg, Shreveport & Pacific R. R. Co.'s must, each of them, eventually own or control in their own interest, a sufficient river frontage at Vicksburg, and at Delta, to ac. • commodate the through and river business, and in previous letters, I have called qpou you for estimates of the probable cost to each Com¬ pany, of such land and improvements. I would like, however, for you to give me an estimate of the prob¬ able cost of one suitable transfer boat, of capacity equal to taking at one trip not less than eight (8) passenger and baggage cars (one full pas¬ senger train) across the river. As it is possible a Transfer Co. may be organized for the purpose of making the expenditure necessary to transfer all business from and to each road, it may, perhaps, also be well for you to make an estimate, separate and distinct from those heretofore called for, covering the cost of the river front, and of an incline on each side of the river, such as it would be necessary for a Transfer Co. to own or control, in case such a Company should undertake to do this business. Yours truly, (Signed) FRANK S. BOND. 88 Cincinnati, O., October 16, 1884. Frank S. Bond, Esq., Dear Sir: TRANSFER MISSISSIPPI RIVER. The fact that you have been on the spot, and have made a careful and close examination of both sides of the river in the vicinity of Vicksburg, will render my report less lengthy than would otherwise be the case. Ever since the "cut off" took place, the shores of the river in the vicinity of Vicksburg have been in a very uncertain condition, and al¬ though a good deal of money has been expended, stability has not yet, as a matter of fact, been assured. The Government has spent consider¬ able money in trying to hold Delta point by a series of mattx esses, and it is still working there. Although the officials express themselves con¬ fident, yet there are indications of slides and breaks, which present, by no means, a happy augury. t Taking the shortest water route, we should have to start from jiist below Vicksburg, at a place called Kleinston, and go straight over to Delta side, at a place just below the point, where there would be but little current to interfere with our boat. The land needed on each side is owned by the Vicksburg Land and Wharf Company. I have for a long time been agitating the question of payment for right of way, and have always been assured that when ready to trade, I should find the other side reasonable. They now propose : 1. To handle our business at such rates as is customary at similar points. They are to find the land needed on both sides of the river, and we are to build the inclines, keep them in repair, and put the cars on and take them off the boat. They will find the boat, and also provide an elevator, at each side, for the purpose of handling river freight, which, it is considered, will prove a large business. Although this latter will not be so much for railroad purposes, yet they will use the same elevator and wharf-boat for local trade, and other business destined to go over our road. , They propose that the contract will last for ten (10) years. 2. An alternative is that they will sell us ten (10) acres of land on each side, with suitable river front, for $100,000.00, $60,000 to be paid for the Vicksburg side, and $40,000 for the Delta side. There is much subject for deep consideration in all this. The rate agreed upon for transfer^will, of course, include their re¬ turn upon the value of their land, and it must be so considered. They will guarantee the most efficient service possible, and that our cars and passengers will be handled with promptitude and dis¬ patch. 89 la this connection, I append you marked "A," copy of letter from Sir. Smedes to Major Waddill; " B,'' copy of letter from Major Waddill to myself; and "C," copy of letter from Mr. Smedes to me. The objection these people have can readily be seen and understood. They represent the congeries of interests, all of which are dove-tailed one into the other, and they are apprehensive that if we buy the land which fronts on the most stable part of the river, their other interests will pe imperilled. Taken as a matter of policy, and in view of our finances, I think if a reasonable rate can be effected with those people for the ser¬ vice to be performed, we could afford to make a contract with them, as iL must be borne in mind that if we move down to Warrenton, we have t ) spend a good many thousand dollars to get there, and no matter how close we run to Delta point, we will have a much longer river transit, aud must also go to a good deal of expenditure in buying land on the Delta side, and slewing our track thereto. If we make this contract, we would only have to expend the sum of $25,000.00 on each side, with the addition of such tracks as we might find necessary on the bank for switching cars. I really think the better plan would be that I be instructed to go to Vicksburg, and discuss details on the basis of our occupation of the terms offered by Mr. Smedes, on the basis that his Company does our transfer business. There are several minor points which I need not touch upon, but iti all of which I can see that the Companies' interests are properly safe-guarded. One advantage to be gained is that we should have ample time to verify the official statement that the point at Delta will be held. Mr. Bouscaren's estimate as it now stands, reads as below: Vicksburg Side. Delta Side. One Incline $25,000.00 One Boat * 50,000.00 Land 10,000.00 Grading 4,000.00 One Incline 25,000.00 One Boat.... 50,000.00 Land 10,000.00 Grading 4,000.00 " Total estimated cost, exclusive of tracks $178,000.00 " The cost of the tracks required to connect the inclines with the V. & M. and V.r S. & P. R. R. was estimated separately under the head of ' siding and yard.' "A separate êstimate of the cost of the Transfer should include about two miles of track at $7'500 $15,000.00 making the total estimated cost 193,000.00 or if one boat only is used, deduct 50,000.00 , $143,000.00 90 " I have estimated on two boats, because I think they are necessary on account of the long ferriage, over 3J miles, and the interruption which would ensue from the repair of a single boat. "The above figures are subject, of course, to large contingencies, as it is not practicable to estimate closely on the cost of this land, and the protection which may be found necessary for the preservation of the inclines," but these figures must be viewed in the light in that which I have written above. I have not yet heard from Capt. Dabney, as to the terms on which we can purchase the land at the spot pointed out where the negro cabins were. I enclose you maps described as below, for your information. Yours truly, JOHN SCOTT, V., P. & G. M. Vicksburg, Miss., Sept. 6, 1884. Maj. G. C. Waddell, St. Louis, Mo.: My Dear Sir: In reply to your request that I would name á price at which we would sell to the Y. & M. R. R. a right of way for their transfer incliue on the land belonging to the Vicksburg Land & Wharf Co., I must say that, after careful consideration, I have concluded that if we can possi¬ bly make any other arrangement, which would be satisfactory to the Railroad Company, it would suit us much better not to sell. It is not merely a right of way which we would part with if we were to sell you 100 feet in width on the line indicated by you, but -we would be losing 1,500 feet of our river front with all the advantages ' incident thereto. Take away the river front, and I consider the land in the rear as of very little value. As you are aware, the L. & W. Co. has invested quite a large amount of money for the purpose of owning and controlling the low water landing of the City of Vicksburg, and each year, as the lake fills more and more, our business season begins earlier and ends later, and we think before many years the whole river business of the city will be done over our landing. The street railroad, the elevator, and the wharfboat, in all of which the parties composing the L. & W. Co. are largely interested, are now located and doing business on the land which you ask me to offer for sale, and after a careful examination of the balance of our river front, I cannot find any place that I could use for them without a great deal ' of expensive work, aud then we would have nothing permanent, because the caving bank begins immediately below the point at which the sur¬ vey for your incline ends. ( Before you approached me on this subject, I had had several inter¬ views with Mr. Hardy, who told me that he had been requested by Mr. 9Í Scott to see what he could do abou,t the transfer business, and we had discussed and agreed upon an arrangement which he thought would be acceptable to Mr. Scott, and which I was willing to make on the part of the Delta Wharf and Land Company, as well as for this side of the river. The arrangement proposed was about this: That we, the Vicksburg and Delta Land and Wharf Company, should furnish the land on both sides for the inclines, and a suitable transfer boat and operate the same and should furnish and operate suitable wharfs and elevators on both sides for all freights to and from the river; the railroad to build, keep in repair and operate the inclines, i. e., to put the cars on and take them off the boat, and to pay us a reasonable compensation based upon the prices paid at other points, say Memphis, Arkansas City and New Or¬ leans, for similar services, the L. & W. Cos. reserviug the right to charge steamboats for wharfage and agency as is now done. The con¬ tract to be for a term of years not less than ten. This arrangement would not interfere materially with our other intex-ests here, and in fact could be very well worked in conjunc¬ tion with them, and I should think would be especialiy acceptable to Mr. Scott, as it would allow time for a thorough test of the efficacy of the Government works for the protection of Delta Point before making a permanent investment. I am now under a temporary contract with Mr. Hardy, elevating and transferring the V. & M. river and ferry freights in a manner which he assures me is satisfactory to him, and I am confident if I had the whole business I could do it at a considerably less price and in an equally satisfactory manner. I fully agree with you in all you said about the large business in store for the V. S. & P. and V. & M. when a cheap and convenient system of transfer has been established at this place, and you can count on my best wishes for their success, and if I have anything to do with the business my best endeavors to that end Though no longer connected with either road, I cannot forget my former interests in them, and the fact that my father was the builder of one and an active promoter of the other. I can well remember when I was a boy, hearing him talk just as enthusiastically about their future as you do in their infancy, and now that they have grown up, it would be a source of great satisfaction and pride to me to officiate, as it were, at their wedding. In fact, I think you will find all of us willing and anxious to accom¬ modate the railroad, but it would suit us very much better to make some such arrangement as I have mentioned, than it would to sell. Yours, very truly, (Signed) . ' THOS. M. SMEDES. 92 ,, t Yicksburg, 18 Sept., 1884. Col. John Scott, Pres. and Gen. Man.: Dear Sir : VICKSBURG AND DELTA TRANSFER. I herewith enclose a letter from Capt. T. M. Smedes, who is agent for both the Yicksburg Wharf and Land Co., and also the Delta Wharf and Land Co. It is mainly through the lands of these two companies that the proposed railroad inclines are located. Wholly so on the Vicksburg side, and principally so on the Delta side. You will observe that Mr. Smedes' letter was addressed to me at St. Louis. t I had endeavored to obtain from him to name the price at which ^hey (the Yicksburg Wharf and Land Co.) would sell the 100 feet wide right of way, occupied by the incline, but I could not get him to name a price until after I had communicated to you the substance of his let¬ ter, which I do by sending the letter itself. ^ I think this Company very earnestly desire to meet in a friendly way anything you wish, which you will the better understand when I tell you that Mr. Pitman is largely interested in it. Years ago, in fact before the sale of the Meridian road, this wharf and land company paid what then seemed to me a very extravagant price for this tract of land at Kleinston or South Yicksburg, their object being, they allege, to control this lower landing. Hence they express a, great unwillingness to part, by sale, with the portion which is valuable as a city landing, and the place selected for your " incline " is, they say, the only suitable one for wharfboat and elevator, being the only deep water they have where they also have a permanent bank. Just below the point selected the bank continues to cave. For the reasons given, Smeedes asks—before stating any price at which they would be willing to sell this right of way—that I will ask you if it would suit you as well to let the two wharf and land companies (occupying each side of the river where the maps sent to me locate the " inclines,") furnish a boat and by contract do the transferring and elevating for the two railroads ; that is, he says, on such terms as is being paid for similar service at New Orleans, Memphis and other points. Smedes is agent for both wharf and land companies. Such an arrangement would throw upon "Smedes' agent" the necessity of securing on the Delta side such lands, if any, as might be required for railroad purposes, and as are not now owned by the Delta Wharf and Land Company, if any. To my mind the arguments, or main ones, that are presented pro and con., in connection with such a contract, are about as follows : 93 " Pro." First. The two railroad companies wotild be spared the present necessity for paying out money in the purchase of elevators, a ferryboat for transferring cars, and purchase of wharfs and lands. Second. The permanency of the proposed landings depends on whether the Delta Point is prevented from caving by the Government work there, done and yet to be done. The time consumed in a contract would definitely settle this question, and if settled unfavorably the losses from the shifting landings would fall upon the contractor and not the railroad. ' "Con." First. Even though the prices now asked may be high, it is very certain that the prices of the landings and lands for side tracks, etc., would be enhanced when it shall be proven that they are permanent, I enclose the map showing the Vicksburg side proposed incline, and Smedes assures me that his Vicksburg Wharf and Land Company own on the front, or river bank commencing at 'A,' (next to the Railroad Company's property), thence down the river to some distance below * C.' If so, you will observe that all yon ask for on that side of the river is owned by the V. W. & L. Co. You will also observe at " D " the pencilled outlines of the wharf boat. This is the location to which the wharfboat is about being moved from where it is shown on the map, a change made necessary by the shallowness of water where it now is. Smedes says the bank is a caving one, below "C," and the only suit¬ able place for the wharf-boat is at "D." You understand that at low water, all the river business at Vicks¬ burg is done through this wharf-boat. Smedes' letter reached St. Louis after I had started home and was returned to me. * I enclose it that you may the better understand his request. If you should think it best not to make a contract, I am assured by Mr. Pitman, as well as Mr. Smedes, that their desire is to meet your wishes on any fair terms, and as you have just telegraphed me that you will be here in about ten days, I think the whole matter may be more satisfactorily discussed orally. Please at once return me the enclosed map. You are doubtlessly aware that I am largely interested on the Delta side, but have no interest -on the Vicksburg side. In order to get this off to-day, will defer report as to the Delta side, until you reach here. Mr. Smedes, however, is agent for both com¬ panies. Yours, very truly, (Signed) GEO. C. WADDILL. Please to telegraph me what day you will be here, so soon as you know, less may be absent. 94 Vicksburg, Miss., Oct. 7, 1884. Mr. John Scott, Pres. Etc., Cincinnati, Ohio: \ My Dear Sir : s. In response to your request that I would name a price at wkibh the Vicksburg and Delta Land and Wharf Company would sell you the land needed for your inclines on the lines designated by you, I would state that if you will make me an offér to pay to the Vicksburg Com. pany the sum of $60,000, and to the Delta Company the sum of $40,000, your offers Will be accepted by the respective companies, as the matter of valuation and sale has been entirely entrusted to me. I must again say that I consider it against the interests of the par¬ ties owning the stock of the Vicksburg Land and Wharf Company to part with the river front which you propose to buy. This Company was organized soon after the cut-off took place at Vicksburg for the purpose of buying and owning the ground which we foresaw the future landing of the City of Vicksburg must be located upon, and of doing the river business of the city. The stockholders in the Land and Wharf Company are also the principal owners of the street railroad and the wharf boat and elevator, all of which are located and doing business on the ground which you want, and after a careful examination of the river front below, I can find no place at all suitable for their business, nor which can be made so at any reasonable expense, or with any prospect of stability because, as I explained to you, the caving bank begins just where the line of your proposed incline terminates. We have here at Vicksburg a state of affairs which exists ât no other point on the Mississippi River between Cairo and the mouth of Red River. It is well known that left to take it natural course, the river presents an endless succession of caving banks on the one side and of filling in on the other, so that nowhere is the bank fixed or permanent. Here, the Government of the United States, after spending nearly $300,000 in stopping the caving on Delta Point, has made a permanent bank on the Louisiana side, and the solid ground at the foot of the hills on the Mississippi side presents a barrier that even the great river can¬ not move. ' During the summer and fall the current, owing to the diminished volume of the river, is weaker and there is some little deposit on our front, but the spring freshets swell the river, and the current with re¬ newed force, the opposite point still being held, washes away the deposit, leaving us our deep water, and the same changes will recur year after year, as long as the point opposite is not allowed to wear away. Thus we have here what you see at no other place, permanent banks on east side nearly opposite to each other, with the same power that made them so, pledged to their maintenance. 95 This fact it is which makes the laud you want so valuable to us for our various interests, and it is, that I may not altogether lose the benefit of it that I have been so solicitous to retain control, and under a traffic management with me, accommodate at the same time your business and our own also. If, however, we should not be able to agree about the transfer, or you determine that it is to* your interest to buy the land and do your own work, we will sell upon the terms above mentioned. This price will cover the right of way wanted by your inclines, aud such other ground as you may want for side tracks, etc., not ex¬ ceeding ten acres on each side lying along the inclines, but with a con¬ dition that the land sold you shall be used solely for railroad depots, warehouses, sheds, tracks, switches, etc., necessary for the purpose of transferring your cars across the river. I hope to-morrow to receive the papers which you were to have Mr. Collbran send me, so that I can make you a definite proposition in regard to the contract for our doing your transfer work. I am, Sir, Very respectfully yours, v (Signed). THOS. M. SMEDES. APPENDIX G. Cincinnati, 6th October, 1884 JOHN SCOTT, ESQ., , Pres. and G. M. Dear Sir: Will you please furnish me with a statement showing the number of Locomotive Engines, the number of Passenger Cars, 1st and 2nd class, the number of Baggage, Mail and Express Cars, the number of Box, Stock, Coal, Dump and Flat Cars, belonging to. each of the associate .railroad corporations. Will you also please furnish me with a statement, showing the yearly payments any of the associate companies are obligated to pay for cars already acquired or contracted for, under the Pul- man or other car trust arrangements. Will you also please furnish an estimate of the probable cost of such additional equipment, as may be required during the next fifteen months, or say to the end of the year 1885. Will you also furnish an estimate of the probable cost, if any shall be required, of general shops and machinery necessary for the associate companies, the cost of which is not included in the estimates heretofore called for from the several companies. Yours truly, (Signed) FRANK S. BOND. Cincinnati, Ohio, 16th October, 1874. FRANK 5. BOND, ESQ., .58 West 23d St., New York. Dear Sir : ROLLING STOCK—ALL DIVISIONS. In reply to your letter of 6th inst*, I beg to report that we have on our several divisions, Motive Power and Rolling Stock, as under : Total C. N. O. & t. p. A. G. S. N. O. & N. E. V. & M. V. S. '& p. 142 Engines 54 32 29 13 14 36 Coaches, 1st class,12 8 10 Sleeper, 2 4 27 " 2d " 10 6 — 5 6 oA j Baggage ' 11 ) 5 3 1 4 J Mail and Express 3 f Postal 3 3 Parlor 3 4 1 Officers, 1 1 Pay Car, 1 *2352 Box, 1495 *160 366 56 275 377 Stock, 248 27 — 2 100 1679 Coal, 372 215 965 27 100 328 Dump, 178 150 / 766 Flat, 326 77 99 65 199 87 Cabooses, 36 22 18 6 5 6 Oil Tank, 6 — — — — 30 Service, 2 13 15 — — *500 more contracted for. Delivery will begin this month. 97 We have a good deal of Rolling Stock, which is out of date, obsolete, and not fit to repair. The larger part of this has been left out of the above figures. The yearly payments due for Rolling Stock on hire, are :— N. O. & N. E. R. R. 1884 $ 30,811.34 1885 111,145.37 Passenger 1886 99,674.52 and 1887 99,674.52* Freight Cars. 1888 99,674.52 1889 8,306.21 » $449,286.48 I « V. S. & P. R. R. 1884 $12,248.01 1885 35,560.56 1886 - 35,560.56 Passenger 1887 35,560.56 1888 35,560.56 and 1889 30,856.32 1890 30,856.32 Freight Cars. 1891 30,856.32 1892 30,856.32 1893 30,856.32 1894 20,570.88 $329,342.73 15 new engines bought to enable other Roads to take them and .send light engines to the V. S. & P. R. R., although actually bought on account V. S. & P., these engines are contracted^ for in name of N. O. & N. E. R. R. 1884 $ 7,286.68 1885 43,720.00 1886 • 43,720.00 1887 36,433.32 $131,160.00 , A. G. S. R. R. 1884 4,612.00 1885 6,641.28 Six 1886 6,641.28 Passenger 1887 6,641.28 Coaches. 1888 6,641.28 1889 553.44 $31,730.50 è8 ' , ■ 500 fRÜIT CARS to come for A. G. S. R. R. 1884 $12,105.00 1885...., 57,630.00 1886 .57,630.00 1887 '... 57,630.00 1888 .- 57,630.00 1889....... 48,025.00 290,650.00 6,125.19 24,500.00 24,500.00 14,292.11 69,448.82 It is rather hard to specify requirements under this head for a year only ahead, but taking the period to the end of 1887, it is believed there will be needed for equipment on account of each division, as under: C. N. O. & T. P. R. R. Engines 12 $106,ooo.oo Passenger Cars 12 54,ooo.oo Box Coal 500 2oo,ooo.oo Stock 100 5o,ooo.oo Flat 100 35,ooo.oo Caboose 12 9,600.00 Wrecking 2 12,000.00 $466,600.00 A. G. S. R. R. Engines 12 $100,000.00 > • Coaches - 10 45,000.00 Coal Cars 1000 4oo,000.00 Flat 200 7o,000.00 Stock 100... 5o,ooo.oo Cabooses 2 9,600.00 Wrecking 1 6,000.00 Bagg. & Express 5 15,000.00 $695,6oo.oo N. O. & N. E. R. R. Engines, Switch 2 i.... $17,000.00 Passenger Cars 10 4o,000.00 Baggage 4 l.._ 12,000.00 Coal 500 200,000.00 Flat 100 * 35,ooo.oo Stock 200 loo,ooo.oo Wrecking 1 6,000.00 8 NEW ENGINES. 1884 1885 1886 1887 $41o,ooo.oo 99 Y: & M. R. R. Engines 17... : $136,ooo.oo, Coaches 10 4o,ooo.oo Baggage 4 . 12,ooo.oo Box 250 100,ooo.oo Stock 73 36,ooo.oo Coal 73 29,2oo.oo Cabooses 5 4,ooo.oo Wrecking 1 6,000.00 $363,7oo.oo V. S. & P. R. R. * Engines, Switch 3 $24,ooo.oo Coaches 4 16,ooo.oo Baggage 2 6,000.00 Wrecking 1 6,000.00 $52,ooo.oo These may be provided in several ways : I. Cash Payments. II. Rental. A. 5 years basis, 20 per cent. cash. B. 7 or 10 years basis, 10 or 15 per cent. cash. To get at amount per year, decide on the basis of years, then divide by number of years and spread 6 or 7 per cent, whichever it may be, over the annual payments. 1 At best, figures must be problematical, aud so must require¬ ments, as they hinge upon gross receipts. Shops and Machinery requirements are dealt with in other reports. Yours truly, JOHN SCOTT, ' General Manager.