HE 791 V HARVEY FISK. A. S. HATCH. R'Xft o i\t 8ndl(olders Central Pacific Railroad Company. JANUARY 1st, 1872. FISK & HATCH, Bankers, > ;kw vohk, fc$ 1 1 T Banking House of FISK & HATCH, No. 5 Nassau Street, New York. January 1st, 1872. At the close of the year 1871, we are enabled to lay before the holders of the securities of the Cen- tral Pacific Railroad Company, a Statement of the business operations and revenues of the Com- pany, and the increasing value and importance of its immense property and traffic, which must prove of more than usual interest and satisfaction to them. The Operations of the Road have been con- ducted throughout the year with great regularity and success, without the intervention of any im- portant interruption or accident. The receipts from passengers and transportation have increased about 20 per cent, over those of last year. The increase in the through passenger travel westward and in the shipments of Asiatic and California products eastward has been so rapid and important, that notwithstanding an unprece- Ik* Ik 2 dented drouth, and the consequent large reduction in the wheat harvests of California, the Gross Re- ceipts for the year 1871, as will be seen below, amount to upwards of $9,500,000, thus substan- tially justifying the estimates made at the begin- ning of the year. With an average wheat crop in the fertile val- leys of California which are traversed by the Cen- tral Pacific Railroad and its branches, the earn- ings for the year would have largely exceeded the estimate of $10,000,000 which we ventured to give in our Statement of January 2d, 1871. Full returns of the details of through and local passengers and freights have not been received for the year just closed, but the following figures for 1870 will show the very large proportion of local travel and traffic, which the Central Pacific Rail- road enjoys in addition to its large receipts from through transportation between the Atlantic and Pacific States : PASSENGERS 1870. Through, Eastward _ _ _ 23,795 "\036 Westward 32,241 } 56,< Local, Eastward 313,539 - " Westward .297,019] Total passengers, through and local, 666,594 FREIGHTS 1870. Through, Westward... 35,577,273 lbs. Eastward..... ...22,826,357 " Local, Westward 383,853,604 " " Eastward 458,160,411 " Total freights, through and local, 900,417,645 " The Overland Transportation of East India Goods, especially of tea and silk, via the Central Pacific Railroad, although comparatively in its in- fancy, has developed with an unexpected rapidity, exceeding the most sanguine expectations. The following table, showing the remarkable increase in shipments, eastward, over the Pacific Railroad from San Francisco for the first nine months of 1871, compared with those for the corresponding period in 1870, is taken from the Alia California trade review of late date : 1870. Articles. (9 months.) Tea lbs. 1,559,317 Silk 92,906 Wine 750,036 Wool 4,487,126 Salmon 445,994 Hops 94,907 Leather 584,779 Cotton, glue, coffee, quicksilver, crude metals, etc 100 Total lbs 8,015,165 1871. (9 MONTHS.) Increase. 9,671,761 8,112,444 628,339 535,433 1,502,250 752,214 12,949,751 8,462,625 609,713 163,719 134,505 39,598 1,193,607 608,828 1,542,582 1,542,482 28,232,508 20,217,343 4 The following tables of earnings for each month of the years 1870 and 1871, will show the steady increase in the business of the Road: 1870. 1871. Months. January $413,104.41 $536,498.94 February 394,176.47 485,490.06 March 488,331.92 614,446.95 April 633,758.06 720,929.22 May 768,719.77 892,341.33 June 729,274.46 795,176.35 July 783,099.64 869,296.82 August 807,815.68 1,006,373.11 September *787,183.48 995,921.89 October 828,447.09 981,005.48 November f777,513.13 898,862.00 December 583,692.07 ||750,000.00 $7,995,116.18 $9,546,342.15 The ratio of operating expenses, (estimating for the last two months), will be less than 50 per cent, and the Net Earnings for. the year will exceed $5,000,000. The subjoined table will show the Gross Earn- ings and Operating Expenses, and the number of miles operated in each year, from the commence- ment to the present time. * Given $10,000 less in last statement by a typographical error. f Given in our statement of last year, as telegraphed approxi- mately, $746,800. The official returns show an addition of $30,713.13 as above. X Estimated at $550,000 in our statement of last year. II Estimated. MILES OPERATED. GROSS EARNINGS. OP. EXPENSES 1864 18 to 36 $113,413.89 $66,541.98 1865 31 to 56 401,941.92 121,669.53 1866 56 to 94 864,917.57 200,710.61 1867 94 to 137 1,421,525.14 333,623.92 1868 137 to 468 2,315,409.00 845,632.64 1869 468 to 742 5,716,115.54 3,124,618.54 1870 742 to 900 7,995,116.18 4,194,354.84 1871 900 to 1,000* 9,546,342.15 4,325,428.11 Total $28,374,781.39 $13,212,580.17 The following will show the Net Earnings, Interest Liabilities, and Surplus Earnings after payment of Interest, of each year for the same period. INTEREST PAID ON SURPLUS OP NET EARN- NET EARNINGS. BONDED DEBT. INGS OVER INTEREST. 1864...... $46,871.91 46,872 1865 280,272.39 102,111 178,161 1866 664,206.96 125,380 538,827 1867 1,087,901.22 277,140 810,761 1868 1,469,776.36 995,010 474,766 1869 2,591,497.00 1,084,350 1,507,147 1870 3,800,761.34 fl,834,930 1,965,831- 1871 5,220,914.04 f2,884,414 2,336,500 Total. . .$15,162,201.22 $7,303,335 $7,858,865 * Including the California and Oregon and San Joaquin Valley Branches. t The amounts in the above table, prior to and including the year 1869, are all in gold. For 1870 and 1871, for greater convenience in exhibiting results, the earnings and expenses (which are partly in currency and partly in gold), and the interest payments (which are in gold), are all stated at their currency value by adding to the amounts received and paid in gold the average premium for the year. In a similar table given in our pamphlet of Jan. 2d, 1871, the amount of the interest payments for 1870 was stated in gold, while in the above the premium is added. 6 The Gross Earnings for 1872, it is believed, upon the most cautious and moderate estimates, will not be less than $12,500,000, and may reach $15,000,000, while the ratio of operating expenses is not ex- pected to exceed that of the past year. The mileage of the Central Pacific Railroad and branches has been increased during the year 45 miles, independently of the additional side tracks, &c, laid. The lines owned and controlled by the Central Pacific Railroad Company now include the following, designated according to their titles previous to consolidation : Main Line. Miles. Central Pacific E. B., of California, Sacra- mento to Ogden 742 Westeen Pacific B. E., of California, Sacra- mento to San Francisco 138 Spue Line to San Jose ; Niles to San Jose 20 Spur and Loop Lines near San Francisco. San Francisco and Oakland E. E 8 23 Oakland and Alameda E. E 15 Branch Lines. California and Oregon Branch, (completed 116) *330 San Joaquin Valley " " 58 152 Second and Side Track, 70 70 Miles completed, 1167 Total mileage, 1475 * The length of this branch has heretofore been stated as about The equipment of the Company has been enlarged and improved during the year, and additional engine houses and repair shops erected. It consists, at the date of our latest report, of: Locomotives, -' - - 179 Passenger Cars, - - - 172 Mail and Baggage Cars, 33 Freight and Construction Cars, 3645 Engine Houses, - 8 Repair shops, - 7 The Company now have under construction over 500 additional freight cars, which are required for the rapidly increasing business of the Road. The value of the Equipment, shops, &c, is at least $8,000,000. In our last Statement reference was made to the consolidation of the Western Pacific Railroad Company with the Central Pacific Railroad Com- pany, and to the subsequent consolidation between the Central Pacific Railroad Company, the San Francisco, Oakland, and Alameda Railroad Company, the California and Oregon Railroad Company, and the San Joaquin Valley Railroad Company, by which 312 miles. After numerous and thorough surveys the Company have determined to carry the line up the Valley of the Klamath River to the Oregon line, thereby lengthening the line about 17 to 18 miles. By this change in the route very heavy grades in cross- ing the Siskiyou Mountains are avoided, and other important ad- vantages secured. 8 all the most valuable railroad franchises on the Pacific coast, and, in fact, almost the entire rail- road system of California, became merged and vested in the Central Pacific Railroad Company. The Western Pacific and the San Francisco, Oakland and Alameda were completed Roads, connecting the Central Pacific at Sacramento, its original Western terminus, with San Francisco, San Jose and other points, and they now form a part of the Main Line of the Central Pacific Rail- road. The two others, now known respectively as the California and Oregon Branch and the San Joaquin Yalley Branch of the Central Pacific Railroad, running nearly at right angles with the main line, reach out from it North and South into the two remarkable valleys in which is em- braced the greater part of the agricultural and mineral wealth of California. These two branches, now being constructed, have assumed an importance in their relations to the business, wealth and future revenues of the Company, which will render interesting a more extended description of them than we have heretofore given. The Route of the California and Oregon Branch, commencing on the main line of the Central Pacific Railroad at Roseville, 16 miles east of Sacramento, extends in a northerly direction up the rich and fertile Sacramento Valley to the Oregon boundary, and will be the natural outlet for a very large section of country, now rapidly fill- ing up, embracing Northern California and Ore- gon, to San Francisco, the metropolis of the Pa- cific coast. It is already completed and running to Red Bluff, a distance of 116 miles, and considerable additional work has been done beyond this point, which, together with materials on hand and paid for, represent an expenditure of $7,500,000. This Branch, when completed, will be about 330 miles in length. Connected with it is a very valuable land grant, from the United States, of 12,800 acres to the mile, or over 4,200,000 acres in all, consisting to a very large extent of lands of superior value and fertility, and available for immediate and rapid settlement as the Road pro- gresses. The Sacramento Valley is remarkable for its extent, fertility and resources, having a length of three hundred miles, with an average of a hundred miles in width, including foot hills, and contains, perhaps, the largest unbroken body of agricultural land west of the Rocky Mountains, 10 unless the Valley of the San Joaquin River (which is its counterpart on the south) be the exception. It connects the thriving cities and towns of Sacramento, Lincoln, Marysville, Chico, Red Bluffs, Tehama, Shasta and Yreka ; and at the California boundary, or at some point in Oregon, will meet and connect with projected roads from Portland, Oregon, and will thus form the most valuable portion of the great north and south line of the Pacific coast, extending from San Francisco to Portland. By Act of Congress, there were granted to the California and Oregon Railroad Company the right of way, the right to draw materials for construction from the adjacent public lands, and twenty alternate sections (twelve thousand eight hundred acres) per mile of the public lands lying along the route ; and in cases of preemption, or previous disposal of the lands within the twenty-mile limits, the Company receives the privilege to make up the deficiency from sections beyond those limits. By the consolidation referred to, these valuable grants and privileges become the property of the Central Pacific Railroad Company. When it is understood that the lands thus ob- tained are among the best in California, and that for all the purposes of agricultural, horticultural, 11 or pastoral uses, they are not excelled by any on the continent, the value of this grant may be appre- ciated, both as an available present resource of the Company, and as an unfailing source of future revenues. The Company will be entitled to patents for about two million acres within the counties of Placer, Yuba, Sutter, Butte, Tehama, and Shasta, comprising the finest alluvial, pasture and vine lands, adjoining which are the lands of private owners, which have commanded, in the absence of railroad facilities, from iive to ten dollars per acre. In Siskiyou County, the Com- pany will have nearly one million acres of valua- ble timber lands. The natural advantages of soil, climate and pro- ducts of the valley of the Sacramento have scarcely begun to be developed. Mining for the precious metals was the first, and is to-day, the most con- siderable branch of industry. More than half of the entire yield of California gold has been ex- tracted from the Sacramento Valley, and it is still more prolific of gold than any equal area in the world. Since the opening of the Pacific Railroad a change is rapidly taking place. The precarious pursuits of the mining camp are being supple- 12 merited by the more settled and permanent in- dustries of the farmer and the mechanic. The average yield of wheat in the counties of Tehama, Shasta, Sutter and Butte is found to be from twenty to thirty bushels per acre ; with other small grains in proportion. From Mr. Cronise's valuable work on the "Natu- ral Wealth of California" we obtain the following statistics on the population, wealth and internal improvements of the counties through which the Road passes : In 1867, before the completion ot the Pacific Railroad, and while the communica- tions in this valley were most imperfect, there was an estimated population of 61,000, mainly adult males, actively engaged ; more than 2,000,- 000 bushels of wheat were raised ; 21 grist mills, 29 saw mills, 79 quartz mills and one woolen mill had been erected, beside upwards of 500 miles of aqueducts, used for mining purposes. These seven counties, according to the latest as- sessment, gave an aggregate of $26,422,639, of real and personal property. The statistics for eight other collateral counties in the same valley, more or less tributary to the Road, then stood at about the same aggregate of population, products and resources. Since that date there has been a large increase in settlement and agricultural products, 13 Not a hundredth part of the arable land in the valley is, even now, inclosed within fences, and not one-thirtieth of that inclosed has been subjugated to the plow. It is stated that coal has been discovered along the line of this Road in the vicinity of Chico. Iron ore is abundant and is now worked in the portion of Oregon through which the connections of this Road will pass. The amount of capital already invested in cattle and sheep in the Sacramento Valley is large, and is constantly increasing. The seasons and the herbage in this portion of the State are especially suitable for grazing purposes, and the products of this branch of husbandry will always find mar- kets in the cities of Central California, and in the mining regions of Nevada, by means of this Rail- road. The capacity of this valley for the production of immense quantities of superior wheat and other grains, is well known, and it only requires the fa- cilities for transportation and access to market, which the Railroad will afford, to render it one of the most prolific and profitable grain-producing regions in the world. It will not require years of slow development after the completion of the Railroad to produce 14 this result, for the plow and the seed are already anticipating the rails, and evidences of increased agricultural industry are apparent on every hand to meet the Road as it advances up the valley. Probably few, if any, railroads have ever been built in this country, with a greater certainty of ample and profitable business to render them im- mediately remunerative. The route of the San Joaquin Valley Branch commences on the main line of the Central Pacific Railroad, at Lathrop, the point of the greatest southerly deflection of the latter, about eighty miles east of San Francisco, and ten miles southwest of Stockton, the principal city of the valley, and extends southward up the San Joaquin Valley, a distance of 152 miles, in a direct course to Visalia, an important centre of stage travel and of mining and agricultural traffic. The valley from which this branch derives its name is the southerly portion of that remarkable depression which reposes between the Sierra Ne- vada and the Coast range of mountains, and which extends nearly the entire length of California. The waters of this valley unite with those flowing from the northern portion, and, together with the Sacramento River, empty into the Bay of San Francisco. 15 The San Joaquin Valley has an extreme breadth of 140 miles, and contains an area of 9,000 square miles (or one-third greater than the State of Massa- chusetts), a large proportion of which is suscep- tible of fruitful and profitable cultivation. This broad area which, with its northern counterpart, the Sacramento Valley, forms a prominent and important portion of the great State of California, has long been known as one of the richest mining regions of that State, and more recently has been found to contain wonder- ful resources in soil and climate for the culture of cereals, wine and fruits, and for the raising of cattle and sheep. It embraces within its limits almost every va- riety of climate from the semi-topical temperature of the alluvial plains at the bottom of the valley, to the more vigorous atmosphere which nourishes the forest growth of the mountain slopes, whose highest peaks are perpetually covered with snow. Besides being the largest, this valley is one of the most populous and productive portions of California. A very large traffic and travel have been car- ried on between its various towns and San Fran- cisco for years, under all the disadvantages inci- dent to slow and costly stage travel and team 16 transportation, slightly aided at fitful intervals by a light-draft, uncertain river navigation. The population, as given in the subjoined table,* consists mainly of adults, actively engaged in mining or agricultural pursuits. The extent of the mining interest is exhibited in the last census, in which are reported 118 quartz mills, with an aggregate of 1,096 stamps for the crushing of auriferous ores, in the above- named counties, in addition to the large amount of capital invested in aqueducts for gold washing. Copper and quick-silver are also extensively mined in the valley. The active construction of the San Joaquin Valley Branch of the Central Pacific Railroad was commenced in July, 1870, soon after the com- pletion of the main line between Sacramento and San Francisco. Twenty miles were completed and ready for operation by the close of that year. * The population of the several counties into which the valley is divided and which will be tributary to the Railroad, was in 1870, according to the United States Census, as follows: Counties. Population. Assessed Value of Property - San Joaquin 21,064 $7,601,000 Stanislaus 6,510 1,609,000 Merced 2,810 2,279,000 Kern 2,335 1,346,000 Calaveras 8,896 1,260,000 Tuolomne 9,913 1,177,000 Mariposa 4,572 1,093,000 Fresno 6,336 2,007,000 Tulare 4,695 4,171,000 17 During the past year (1871) important bridges across the Tuolomne and Merced Rivers have been completed, and the track extended to Merced Station, at the crossing of Bear Creek, a distance of 58 miles from the main line. By this portion of the Road already constructed, a new and much improved route is opened for tourist travel to the renowned scenery of the Yosemite Valley, the " Big Trees," the Mari- posa Mines, &c. This travel is yearly increas- ing in importance, the visitors to the former point alone numbering over 2,000 during the past season. By rendering the great natural wonders and beauties of this region more ac- cessible, and the trip thither more convenient and comfortable, the Railroad will attract a large increase of pleasure travel, which will prove an important source of revenue to the Company. From Bear Creek to Yisalia, 94 miles, the Road will readily be completed within from 10 to 20 months, as may be deemed necessary or advisable. The Central Pacific Railroad Company regard this Branch as the most valuable feeder, in propor- tion to its length, which they could have con- structed. That portion of the valley which the Road now traverses has been long known as "Paradise" 18 among the settlers, from the salubrity of its cli- mate and its wonderful fertility. The entire val- ley is remarkable for the depth, richness and even- ness of its soil, constituted as it is from the allu- vial deposits of thousands of years in what was once apparently the bed of an inland sea. A large immigration of hardy, industrious and thrifty people will follow the Railroad as it pene- trates this attractive and fruitful region. The land is watered by numerous streams, hav- ing their sources in the enclosing mountains on either hand ; and private corporations are now building on either side of the Railroad an exten- sive system of aqueducts for purposes of irrigation, which will ensure an abundant and steady supply of water, completely under control at all seasons, and greatly enhance the value of the lands. The chief trade of Visalia heretofore has been connected with the numerous mining towns and extensive grazing farms of the surrounding country, but the introduction of the Railroad will lead to the production on a large scale, of Wheat, Wines, Cotton, Tobacco, Beet Sugar, &c, for all of which the climate and soil are peculiarly favor- able. 19 The Central Pacific Railroad Company have not been in haste to part with their valuable land grants in large tracts at low prices, leaving to speculators the advantages of an immense future value ; but have confined their sales to the demands of actual settlers and resident investors, believing that the attractions of the climate, soil and markets of California will draw to that State a large emigra- tion from European and Eastern States, which must enhance the value of their land many fold within a few years. By the Acts of Congress the Company were granted on the mainline of the Central Pacific Boad, between Sacramento and Ogden (T42 miles) twenty alternate sections of public lands, or 12,800 acres per mile ; and on the California and Oregon Branch (330 miles) the same number of sections, or a total of over 13,000,000 acres. In California, the lands lying on each side of the main line of the road extend from the navi- gable waters of the Sacramento, above the Bay of San Francisco, across the broadest and most pop- ulous portions of the Sacramento Valley, and both slopes of the Sierra Nevada Mountains. They are diversified in soil and climate and conditions, embracing the semi-tropical productions of the low- er valleys (corresponding to those of Spain, Italy 20 and the shores of the Mediterranean) ; the vine, orchard and grain lands of the foot hills (corres- ponding to those of France, Germany and Aus- tria); and the grazing and timber lands of the mountain slopes (corresponding to those of Maine, Pennsylvania, Sweden and Norway). This cen- tral portion of California is already noted for the excellence of its wheat, grapes, pears, cherries, strawberries, small fruits and garden vegetables generally, and for the ease with which they can be grown to perfection and dimensions unattainable elsewhere. Wheat may safely be left in the field until threshed and shipped, and fruit trees do not suffer from insects or blight. Along the California and Oregon Branch, in the renowned valley of the Sacramento, extending from the centre to the northern boundary of the State, the Company's lands have the same general characteristics. This valley is at present the seat of the most successful culture of small grains (including wheat, barley, oats, &c.) in this country, and also offers unrivalled facilities for extensive and profitable sheep and stock raising. The w T hole comprises a body of over 5,000,000 acres of the best land in California. In Nevada the main line of the Road occupies the Truckee and Humboldt Valleys, the largest 21 and best settled in the State, at a short distance from the numerous and important mining regions, whose yield of precious metals is estimated at from fifteen to twenty millions of dollars annually. The lands of the Company about 5,000,000 acres- are so situated as to command these markets for their produce. Wherever the proper cultivation has been applied, these lands have yielded good crops of cereals and esculents. In Utah, in the great Salt Lake and contiguous Valleys, where the Mormons have so success- fully demonstrated the fertility of the soil and the healthfulness of the climate, the Company have about 1,500,000 acres, equal in all respects to the lands which command high prices at points in the same valley further south. The present value of the lands enumerated above, cannot be estimated at less than $30,000,- 000, and it must largely increase from year to year. The only incumbrance upon them is a Land Grant Mortgage of $10,000,000. Up to 30th of November the Land Department had sold 190,294 acres of land for the sum of $516,271.46, of which all but $66,991.99 was in coin. In addition to the above grants of the public lands, the Company own important and valuable 22 tracts of land in the cities of San Francisco, Oak- land and Sacramento, and at other important points on its various lines of road, which were ac- quired for its own uses by purchase and grant, when comparatively cheap, but which are now very valuable. The Capital Stock account of the Company stands as follows, viz : Authorized Capital Stock. $100,000,000 Amount of Capital Stock subscribed. 59,640,000 Amount of Capital Stock paid in 54,001,960 No dividends have hitherto been paid upon the Capital Stock. The Surplus Earnings, after paying interest and providing for the Sinking Funds in accor- dance with the terms of the mortgages, have been applied to the extension of the Branch Lines and similar improvements, thus adding largely to the value of the Company's property, without a corresponding increase in the Funded Debt. It is expected that within a short time, the sur- plus Earnings, after providing for interest and Sinking Funds, will be divided upon the Capital Stock. The entire surplus Earnings from the beginning 23 to the present time, as shown in table on page 5, amounting to $7,858,865, would be sufficient for a dividend of over Fourteen per cent, on the amount of Capital Stock issued. The First Mortgage Debt of the Company is as follows : Central Pacific R. R. of California First Mortgage 6 % Gold Bonds, issued on the main line of the Central Pacific Railroad from Ogden to Sacramento, amounting to $25,885,000. The Company received on this portion of the Road, under the Pacific Railroad Acts of Congress, U. S. Government Subsidy Bonds for a like amount of $25,885,000 the proceeds of which were applied to its construction and are represented in the value of the property pledged for the security of the First Mortgage Bonds. Western Pacific R. R. First Mortgage 6 % Gold Bonds, originally issued by the Western Pa- cific Railroad Company, on their Road between Sacramento, San Jose and San Francisco, amount- ing to $2,735,000, now assumed, principal and in- terest, by the Central Pacific Railroad Company, under the terms of the consolidation of June, 1870. 24 Upon 123J miles of the Western Pacific Rail- road, U. S. Subsidy Bonds were granted by the Pacific Railroad Acts of Congress, at the rate of $16,000 per mile, amounting to $1,970,000, the proceeds of which were applied to its construction and are represented in the value of the property upon which the First Mortgage Bonds are secured. California and Oregon R. R. First Mortgage 6 % Gold Bonds, issued by the California and Ore- gon Railroad Company on their Road, prior to Consolidation, amounting to $6,000,000 ; now as- sumed and guaranteed, principal and interest, by the Central Pacific Railroad Company under the terms of the consolidation of August, 1870. The Central Pacific Railroad Company are au- thorized to issue upon their California and Oregon Branch, as the work progresses, a further amount of First Mortgage Bonds which, with the above? will make a total of $13,200,000. Central Pacific R, R. Co. First Mortgage 6% Gold Bonds (San Joaquin Valley Branch) issued by the Central Pacific Railroad Company since the consolidation of August, 1870, and secured by a First Mortgage on their San Joaquin Valley Branch, amounting to $6,080,000. The additional Miscellaneous Bonds not in- cluded in the above schedule of First Mortgage 25 Debt (with the exception of the Land Grant Bonds previously referred to), are as follows, viz. : Central Pacific R. R. State Aid 7 % Gold Bonds, the interest on which is paid by the State of California, $1,500,000. Central Pacific R. R. Convertible 7 % Gold Bonds, $1,500,000. There is also a mortgage of $1,500,000 on the Oakland and Alameda Railroad, which was con- solidated with the Central Pacific in August, 1870. The continued success of the Central Pacific Railroad ; its rapidly growing traffic and earnings ; the increasing value of the immense property con- nected with it, together with the high stand- ing of the Company's Securities in all the chief money markets of the World, render our self- imposed task of issuing an Annual Statement to those who have invested in the Bonds one of in- creasing interest and satisfaction to us from year to year. Very respectfully, FISK & HATCH. k Harvey Fisk. A. S. Hatch. OFFICE OF FISK & HATCH, !B A. 1ST K 353 IFL SS , WD DEALERS IN GOVERNMENT SECURITIES, No. 5 Nassau Street, New York. Deposit accounts of Banks, Bankers, and others received, on which we allow interest at the rate of four per cent, per annum. Checks drawn on as are payable on presentation, without notice, the same as at a National Bank. Certificates of Deposit, bearing interest at special rates to be agreed upon, will be issued to Savings Banks, Institutions. Trustees of Estates, and others having sums of money aw r aiting investment. We make Collections on all points of the United States an 1 Canadas. and issue Certificates of Deposit available in all parts of the Union. We buy and sell, at current rates, all classes of Government Securities. We buy and sell, at ilie Stock Exchange, Investment-Stocks and Bonds, on commission, for cash. We buy and sell the Bonds of the CENTRAL PACIFIC RAILROAD COMPANY. As Financial Agents I HESAPEAKE AND OHIO RAILROAD COMPANY, we are now offering the last of their FIFTEEN MILLION SIX PER CENT. GOLD LOAN, secured by mortgage on their whole Railroad property and franchises. The Bonds may be Coupon or Registered; they are of $1000, $500, and $100 each; have 30 years to run from ISO!); Principal and Interest (May and November) payable in coin, in New-York City. We recom- mend them to our friends and customers desiring safe investments, with the same confidence with which we lave sold the Bonds of the U. S. Government and the Central Pacific Railroad Co. '% ,: Communications and inquires, by mail or telegraph, will receive prompt and careful attention. FISK & HATCH. '