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 335.4 + THE LIBRARY OF THE 
 Br \ Qe. | ‘af 
 
 UNIVERSITY OF ILLINOIS 
 
 CIRCULAR. 
 
 
 
 4 
 
 Lo the Stockholders of the La Cross and. ee 
 waukee Railroad Company. . 
 
 GENTLEMEN, 
 
 The important transactions which have taken place 
 within the last few weeks, touching the interests of our Company, are of 
 such moment that it is deemed highly proper, if not actually necessary, to 
 communicate them to the stockholders at large, together with the reasons 
 which have actuated the Board, in engaging in new and large responsibil- 
 ities on behalf of the Company. 
 
 These are chiefly the purchase of the Watertown Railroad, and_pro- 
 curing the land grant recently made by Congress to the State of Wis- 
 consin. 
 
 Our Company, thus far, has kept steadily in view one cardinal idea, and 
 that has been to construct a single line of road, so located on the map of 
 the State as to secure for it the position of a trunk road, which would con- 
 trol the business of a large tract of country without competition. This was 
 to be accomplished by giving proper inducements to other companies to 
 construct branch roads leading off from this main line to remote districts 
 rich in agricultural and mineral wealth, and in the elements of business 
 for those diverging roads. 
 
 But while it has been the policy of the Company to furnish all proper 
 encouragement to other companies to build branch roads, they have as 
 
 _arefully abstained from engaging in any such enterprises themselves; or in 
 
 tise 
 
 Nisha 
 
4 
 
 being interested in them in any manner, other than in forming liberal run- 
 ning connections, and in giving all due facilities for the free and convenient 
 transaction of business. We have deemed it impolitic to divert the means 
 of the company from their one great purpose, into other projects of less cer- 
 tain utility. Indeed, had it been the design of the Company, at any time, 
 to have engaged in those secondary enterprises, we should have deemed it 
 bad policy to do so before completing our main trunk to its western termi- 
 nus. But it has never been the policy, is not now, and probably never will 
 be, of this Company to engage in the construction of any of those numerous 
 roads which the business of the more northern part of the State will soon 
 require ; but they will be built by other hands within a few years, and like 
 the tributaries of a great 1 river, they will collect the business from a wide 
 expanse of country, and sweep it in a flowing tide over our great thorough- 
 fare to the commercial emporium of our State. 
 
 wa Toeality of our road is such that this result will be inevitable, with- 
 “out the expenditure of a dollar by our stockholders. It only requires a fair 
 system of connections, which it will always be the interest of this Com- 
 pany to grant, to assure to our road the construction of these tributary 
 roads by others, and the permanent benefits flowing from them, which, with 
 the business legitimately belonging to our own line, will make our road (to 
 say the least) one of the best paying roads in the United States. 
 
 But it may be asked, if such has been our policy, adopted for sufficient 
 reasons, why suddenly change it and hazard the success of the Company, 
 by diverting its means for the purchase of the Watertown road? And that 
 is precisely the query which it is, in part, the object of this paper to answer. 
 
 Unexpectedly to the country, the application so long pending before 
 Congress, asking a grant of land for the benefit of these works, was at 
 length responded to favorably by that body, and a munificent grant of land 
 to aid the construction of a road from Madison to St. Croix and Lake Supe- 
 rior was the result. This grant consists of six sections, or 3,840 acres of 
 land to each mile of road; which, at a fair valuation, would produce a sum 
 considerably greater than the cost of the road; and consequently, whoever 
 should come into possession of it, would have the means provided, if pru- 
 dently managed, not only sufficient to construct the road, but to afford a 
 considerable surplus, sufficient to meet all contingencies, and liberally re- 
 munerate all risks and sacrifices in conducting the business. 
 
 But as the grant was to the State, to be applied in such manner as the 
 Legislature should determine, it soon became a question, how that manner 
 ought to be to secure to the State the greatest amount of benefit ? 
 Whether the construction of the road ought to be undertaken by the State 
 
5 
 
 itself, and the business conducted by its own officers and agents, or by 
 some other agency ? 
 
 It was understood from the beginning, that the mode of applying the 
 grant would not be through the direct action of the State, but would be 
 through the medium of some incorporated Company. The question was 
 early mooted, whether this should be a new Company, organized by the 
 Legislature for this express purpose, or an old one, already organized and in 
 operation. A large political influence was brought to bear upon the first 
 proposition, and for a time it seemed likely to pcrced, but after being fully 
 discussed, was finally laid aside. 
 
 Among other, and indeed many other ety to secure the benefits of 
 this grant, the Weiter town Company made a formal application for it, 
 which, more than any others, gave us serious cause of alarm. This, in con- 
 junction with various other plans, having local as well as political influences 
 to sustain them, satisfied us that we had only one course to pursue, and that 
 was, to purchase out and consolidate with the Watertown Company, and 
 thereby bring the united strength of both companies to co-operate in the 
 measure. ‘This had the desired effect, and left the field wide and clear for 
 the La Crosse Company to step in and strengthen its position by securing 
 to itself the grant of land, and thereby holding the only basis on which any 
 other company could hope to maintain a successful opposition. 
 
 In doing this, and in performing the additional work which this grant 
 involves, the Company are necessarily driven from their primitive policy ; 
 and equally, of necessity, must extend their operations to another road, 
 from Madison to St. Croix. This, however, is a necessity which will make 
 large and rich returns to our stockholders, and therefore need not be a sub- 
 ject of regret. To have suffered this grant to pass into any other hands, 
 would have been to acquiesce in a successful rivalry which would have 
 thrown the La Crosse road in the shade, and carried off the rich prize 
 which our Company have been laboring to secure. 
 
 If, under all the circumstances, the purchase of the Watertown Road 
 had involved a clear sacrifice of its entire cost, it would have been better for 
 us to meet even that sacrifice, than have it a successful competitor for the 
 land grant, which would have given it the power to sustain itself as a com- 
 peting road. We were not, however, called upon to make any such sacri- 
 fice ; but, on the contrary, the purchase and consolidation of that road with 
 ours, brought into a common interest all the strong influences of our State, 
 and made the present disposal of the land universally popular, and secures 
 to our Company the good-will of all parties, which is a consideration of great 
 value. With the Watertown Road united to ours, there is not and cannot 
 
Near 
 
 6 
 
 be the shadow of competition created or maintained by any other Company, 
 
 for the business of that wide scope of country which our lines will penetrate ; 
 but the whole will remain, for all time, a rich tribute to our road alone. 
 
 This was the prize for which we sought more anxiously than for the land 
 grant itself. The land is undoubtedly a valuable acquisition as a means of 
 securing this result, and also of preventing others from seeking the same 
 thing ; but the land itself, whatever may be its value, would sink into utter 
 insignificance as compared with the ceaseless stream of wealth which will 
 forever flow through the channel of commerce which we are about to open 
 to the great North- Wes and to the extreme further West even to the 
 Pacific. f 
 We feel that, in’ ‘securing the means of accomplishing these ends, we 
 have rendered an invaluable service to our stockholders ; and these are our 
 reasons for a departure from our previous line of policy, seri we presume 
 "will meet the approbation and have the concurrence of the stockholders 
 gk 
 
 The conditions of the purchase of the Watertown Road are, simply, an 
 absorption or consolidation on equal terms, rating stock for stock equal per 
 share; but with this difference, however, that the stock of the Watertown 
 Road cannot become stock of the La Crosse Company under one year from 
 the date of consolidation, and will therefore not be entitled to dividends 
 from the earnings of the La Crosse Road, but remain separate as heretofore 
 until that road, which is now a division only of the La Crosse Road, shall 
 become fully incorporated with it, agreeably to the By-Laws of the Com- 
 pany. The La Crosse Company assumes the debts and liabilities of the 
 Watertown Company, the greater part of which have been paid, and means 
 provided to discharge the remainder in a short time; and it receives its 
 property, rights, powers, privileges and franchises, thereby absorbing the 
 Corporation as such, which has been formally dissolved by the resignation 
 of its directors and officers, all of which proceedings have been subse- 
 quently ratified and approved by an act of the Legislature. 
 
 The effect of this grant of land upon the interests of our Company, and 
 upon our future policy, is a subject of great moment, and demands the 
 most careful attention. Hitherto relying upon the subscribers to our stock 
 and upon the mortgaged land credit of the farmers of our State, together 
 with the usual credits made upon the road itself, we have advanced steadily 
 and successfully in the prosecution of our plan, and have so far accom- 
 plished it as to have now in operation an important section of the road, 
 which is making the most ample returns for the amount expended in its 
 construction. This section of the road extends from Milwaukee to Beaver 
 
0 
 
 Dam, a distance of sixty-one miles, or nearly one-third of the whole dis- 
 tance to the Mississippi, and the returns from this part of the road have 
 considerably exceeded our estimates, and, in fact, have been greater than 
 
 can be shown in the history of any railroad in America, of the same dis- 
 
 tance and first year of its operation. 
 
 By reference to our last Annual Report, p. 10, the estimate of gross 
 receipts was set down at $400,000 for the present year; and that income 
 would enable the Company to make a dividend to the amount of 16 per 
 cent. on the stock paid in. But instead of making a dividend for the first 
 half year, the interest account was kept open until the 1st July, and an 
 interest dividend of 10 per cent. for the year ending that day, paid in stock, 
 as had been previously done under our regulations for the payment of in- 
 terest on stock on the unfinished divisions of the road., The earnings for 
 the same time were credited on construction account, to “Thietigig Gio 
 paid was chargeable. 
 
 From the 1st of July the earnings have been credited to operating ac- 
 count, and the gross receipts after that time (less the expenses of operating) 
 will constitute the amount to be divided to the holders of stock on Ist of 
 January next. 
 
 The earnings for ten months. up to the Ist of the present month, are 
 as follows :— 
 
 
 
 For January, : , : ; . $10,550, 29, 
 
 “February, | F Be) ihe be ge 
 
 “March, . : 3 ! : . 27,226,28, 
 
 April, _. . 82,138,72, 
 
 “May, : A : : . 41,476,00, 
 u June, . e e ° e ° 49,059,384,—180,579,34. 
 
 fe IDL vat : . 2 ‘ . 46,676,75, 
 
 “« August, : y ? 4 . 46,145,78, 
 
 “ September, ; * : .. 66,007,438, 
 
 * October, % F : . 85,673,76,—244,5038,72. 
 
 woe 
 
 
 
 Estimating the remaining months as follows :— 
 
 
 
 
 
 For November, : ; ; : . $45,000, 
 “ December, : ; . : . 85,000,——80,000. 
 Gives Total for the year, ‘ : . ° -  505,083,06. 
 
 This would give for the last half year on which it is proposed to make 
 a dividend, the sum of $324,503 72 gross earnings; from which deduct, 
 say 40 per cent. for operating expenses, would leave $194,702° 24 to con- 
 
8 
 
 stitute the dividend fund (after deducting interest on funded debt) ; from 
 which a cash dividend of 5 per centum will be paid on all general stock of 
 the Company, and the excess, whatever it may be, will constitute a sur- 
 plus to be disposed of in such manner as may be deemed most expe- 
 dient. 
 
 Within a week past the road We Peon opened to Fox Lake, seven miles 
 beyond Beaver Dam, making sixty-eight miles now in use; and the grading 
 being now nearly completed to Portage City, and the iron being on hand 
 for the whole distance, and several miles laid down, the road will be com- 
 pleted to that point by the first of January next, when the whole of the 
 Eastern division will be brought into use; making a distance of ninety- 
 five miles, or nearly half way to the Mississippi River. It is designed to 
 place the remainder of the line to La Crosse under contract, soon after the 
 first of J anuary next, to be completed in eighteen months-from that time, 
 or by July, 1858. It is also contemplated to put under contract, as soon as 
 practicable, the line from Portage City to St. Croix, which it is expected 
 will be completed within four years from the first of January next. 
 
 By reference to the acts of Congress and of the Legislature, herewith 
 published, it will be seen upon what terms the lands are to vest in the 
 Company. The titles will come through the State, and vest in the Com- 
 pany in fee, to the amount of one hundred and twenty sections in advance 
 of the building of each continuous portion of the road twenty miles in ex- 
 tent; consequently, when the whole road is completed, and, in fact, before 
 the last twenty miles is commenced, the title to the whole will have been 
 vested in the Company, which event it is expected will take place within 
 the space of four years from next January, as far as St. Croix, which will 
 be the Mississippi terminus practically of that division of our road, and be 
 the completion of a system within itself, independent of any other exten- 
 sions or connections. At this point, it commands an independent through 
 business. Beyond this point, towards Lake Superior, the Company have 
 agreed to convey their rights to the St. Croix and Lake Superior Railroad 
 Company. This arrangement will be on the condition that that Company 
 shall perform all the obligations of this Company to the State, and shall 
 forever run in connection with the road of this Company, securing to it all 
 the business of that road, in the same manner as if it were an integral part 
 of our road. This road, being virtually a branch and not an extension of 
 our main line, it was deemed better policy to interest another Company in 
 it, than to extend our system in that direction; and by this arrangement it 
 is believed the business interests of our road will be materially benefited. 
 
 From our St. Croix terminus, it is only eighteen miles due west to 
 
9 
 
 St. Paul’s, on the Mississippi, to which point a railroad will be in operation 
 by the time our road reaches St. Croix, thereby opening to our road at once 
 the business of that important place and of the country tributary to it. 
 On the other hand, from our La Crosse terminus, we shall be in connection 
 with a road by way of the Hookah Valley to the south bend of St. Peter's 
 river, and thereby in possession of the business of all Southern Minnesota. 
 Thus it will be seen, by a glance at the map, that when our two roads shall 
 have reached the Mississippi and St. Croix respectively, they will be in con- 
 nection with three extending lines; first, to Lake Superior; second, to St. 
 Paul’s; and third, to St. Peter’s; whereby we make tributary to our road 
 the business of that vast country, stretching away to the North-West 
 almost boundless in extent. 
 
 From the foregoing it will be seen that this Company propose to limit 
 their operations to the construction of two roads, terminating respectively 
 at La Crosse and St. Croix, the latter of which is properly the land grant 
 road, or the line on which the appropriation of land is based. This line 
 commences at Madison, the seat of the State Government, and runs by way 
 of Portage City to St. Croix. From Portage City to St. Croix two lines 
 are being surveyed, and it is not yet certain which of them will be adopted. 
 .This will depend on various circumstances hereafter to be considered. 
 One of these lines will occupy in common the route of the La Crosse Road 
 along the Lemonwier Valley some 36 miles, and will be somewhat shorter 
 than the other, and therefore possesses two important advantages over it; 
 but, on the other hand, the more northerly route, crossing the Wisconsin 
 River near Point Basse, will pass through a tract of country less settled, and 
 in which the land is more generally vacant, and subject to selection and 
 entry by the Company more immediately along the line, which would give 
 to it greater value. But before a decision is finally made, these and all 
 other circumstances bearing upon the subject will be carefully weighed,. 
 and such conclusions arrived at as will most effectually secure the interests 
 of the Company and of the stockholders. 
 
 The line from Madison by way of Portage City and Lemonwier Valley 
 we estimate to be two hundred and fifty-six miles; while, by Point Basse, 
 it will be two hundred and sixty-eight miles. These distances, from the 
 map, are considered very nearly correct, at least sufficiently so for our 
 present purpose, but will soon be corrected or verified by actual surveys 
 now in progress. 
 
 For the purposes of calculation and illustration, I will assume that the 
 line by the Lemonwier may be adopted, being the shorter of the two, and 
 
10 
 
 therefore giving the least favorable result so far as regards the quantity 
 of land to be received upon its completion. r 
 
 This line being 256 miles long, and having six sections of land to each 
 mile of road, makes an aggregate of 1,536 sections of land; and as each 
 section contains 640 acres, the whole quantity of land will be 983,040 acres. 
 By the other line, the distance being 268 miles, the quantity of land would 
 be 1,029,120 acres. One line being a little under, and the other a little 
 over one million of acres. We, however, take 983,000 acres in round 
 numbers, as the basis of our calculations, which will probably be found be- 
 low the actual results. 
 
 The classification and valuation of these lands must be determined by 
 actual examination after the final surveys are made; but our information is 
 sufficiently accurate to enable us to make an approximate classification and 
 valuation, which will not vary materially from the results based on more 
 _ precise data. The region of Jand through which these lines will run, is of 
 a superior quality generally, for agricultural purposes, abounding in water 
 courses, large and small, among which are the Wisconsin, Black, and Chip- 
 pewa Rivers, navigable for long distances, and innumerable lesser streams, 
 affording hydraulic power, so generally distributed as to serve the purposes 
 of the whole country, and afford numerous village sites, which will be 
 speedily occupied by an enterprising people. Some valuable iron mines 
 are also found in this region of country, which will be brought early into use, 
 and no doubt a geological survey will develope extensive mineral resources 
 of great value. 
 
 None of these lands will be offered for sale until the road shall be com- 
 pleted to St. Croix, and been operated a year, which will be about four or 
 five years from this time. But in the mean time, the lands remaining to the 
 Government will all have been purchased and settled upon throughout the 
 whole distance, and the country generally progressing inimprovements. The 
 land then owned by the Company will be the only land in market, and will 
 readily command the highest prices. These being sold on long time, with 
 small annual payments, will enable the better class of actual settlers to 
 purchase them at fair prices, and thus produce a sinking fund for the liqui- 
 dation of our funded debt. Sales made in this manner subject to the pay- 
 ment of seven per centum per annum interest, and the principal in a term 
 of years, will readily produce the following results : 
 
 10,000 acres, embracing village sites, valuable water powers, 
 
 mines, da - - - - - $100 per acre, $1,000,000 
 200,000 acres first class farming land near the line, with smaller 
 
 water powers and other privileges, - - $20 per acre, 4,000,000 
 
11 
 
 300,000 acres farming lands, &e., further from the road, $15 peracre, 4,500,000 
 350,000 acres farming lands, at still greater distance from the road, 
 
 $10 per acre, 38,500,000 
 
 123,000 acres inferior lands, - - - $5 per acre, 615,000 
 
 $13,615,000 
 
 These lands are among the most valuable in the Western country ; and 
 instead of falling below, their value will beyond doubt greatly exceed the 
 above estimate. No one acquainted with the rapid growth and improve- 
 ment of the West, can entertain a doubt, that when these lands shall have 
 extended to them the facilities and advantages of railroad communication, 
 they will command a price far above that contained in this estimate. But 
 our object is to show only, that for the purposes of this Company, these 
 lands will furnish ample security for the amount of funds necessary for the 
 completion of our system of roads to the Mississippi River. In addition to 
 the security thus provided, it is proposed to superadd a lien upon the road 
 itself, whereby not only sufficient, but superabundant security is provided. 
 
 The length of road from Madison to St. Croix, as above stated, is 256 
 miles. From Portage City to La Crosse is 101 miles; from which deduct 
 36 miles, which is in common with the cther, leaves 65 miles to complete 
 the road to La Crosse. To this add 20 miles to be constructed from Co- 
 lumbus to the intersection with the La Crosse road, gives a total of 341 
 miles to be constructed in the completion of our system. 
 
 It is estimated that the maximum cost of these roads will be about 
 $26,000 per mile; but in order that our estimates should be high enough 
 to cover every possible contingency, we will set down the cost at $30,000 
 per mile, to include every thing connected with the expense of the road. 
 This would give a grand total of $10,230,000, which is $3,385,000 less 
 than the value of the land alone. 
 
 Hence it is evident, that a sinking fund consisting of the proceeds of 
 the sales of land, would be ample, long before the maturity of the bonds, 
 to liquidate the debt, and leave a large surplus. It is not proposed, nor is 
 it necessary to ask a credit on these lands for their full value, but only for 
 about one-half or one-third that amount, when taken in connection with 
 a lien on the roads, which would offer to capitalists a security, ample be- 
 yond precedent, and such as ought, and doubtless would command confi- 
 dence every where. 
 
 In order, however, to render the surest guaranties possible, that funds 
 raised for the purpose of these roads on those securities will be faithfully 
 applied, it will be necessary to select three Trustees, well known in the 
 money circles of the world, whose names will be a perfect guarantee to all 
 
12 
 
 parties, and execute to them a deed of trust, covering all those securities 
 (on which the bonds of the Company will be issued), clothing them with 
 full power to control all funds obtained on sales of the bonds, and also with 
 power to control all disbursements through proper agencies, so far as to 
 have always the assurance that all such disbursements are properly applied 
 to the purposes intended, and to none other. 
 
 Ten and a quarter millions of dollars is the whole amount necessary to 
 be raised, to finish, equip, and put in complete operation this entire sys- 
 tem; and of this amount, it is proposed to raise only eight millions upon 
 the credit of the land and roads combined. ‘The value of these securities 
 as above shown, would be, 
 
 On the land, - - : - - $13,615,000 
 On the roads, - - - . 10,230,000 
 ——-———_ $23,845,000 
 
 being near three times the amount of the loan required. The remaining 
 two and a quarter millions required to make the amount of $10,230,000, 
 to complete the road, can be raised on the stock shares of the Company, 
 which will command a premium before the amount will be required. 
 
 For the purpose of creating a sinking fund to liquidate the bonds so 
 issued, the proceeds of the sales of land will be appropriated and sacredly 
 reserved. To this end, the Trustees will be clothed with full power to 
 make sales of the land, at such times as they may determine, and for the 
 highest amount they can obtain, but not less than a minimum price to be 
 previously affixed, which would be sufficient to produce an aggregate 
 amount to pay all the bonds so issued. After the surveys of the lines are 
 completed, a classification of the lands would be reported by the Company, 
 to the Trustees, with minimum values attached, which would be at such 
 prices for each class as would produce the required amount, and the deed 
 of trust would contain a provision that the proceeds of all sales should be 
 under the control and keeping of the Trustees, as a fund for the payment 
 of the bonds of the Company. It would be made the duty of the Trus- 
 tees, to apply all moneys received from the sale of land, direct to the pur- 
 chase or payment of the bonds, on the best terms they could obtain, not 
 however, paying more for the redemption of any bond before due, than 
 one hundred and ten dollars for one hundred dollars of said bonds. Fur- 
 thermore, that all bonds and mortgages, or other securities received as 
 security for payments on land sold, should be deposited safely under the 
 direction of the Trustees, the proceeds of which to be used at maturity in 
 ike manner for the purchase or payment at maturity of said bonds, And 
 
13 
 
 still further it should be provided, that the Trustees should have the right 
 at any time to call in any of said bonds, and pay the principal thereof, 
 and liquidate any such bond, by paying ten per centum more than the 
 face of such bond. 
 
 By such regulations, the Trustees will have all such control as may be 
 necessary over the whole subject of finance based on these securities, from 
 the negotiation of the loan, to the sale of lands and payment of the 
 bonds; and consequently the bond-holders have the guarantee of the 
 Trustees, in addition to the faith of the Company, that the latter will keep 
 and perform its obligations. 
 
 If, as anticipated, these lands shall command the sum of $13,615,000, 
 or upwards, it will be more than sufficient to pay the whole indebtedness 
 of the Company, as will be apparent from the following statement. The 
 indebtedness of the Company at this time is as follows: 
 
 First mortgage bonds Eastern Division of the L. C. and 
 
 
 
 Mil. R. R. = - 4 - - $950,000 
 Milwaukee City bonds do. - - : - 314,000 
 Convertible 7 per cent. bonds, do. do. - - 300,000 — $1,564,000 
 First Mortgage Mil. and Watertown bonds, from Junction 
 to Watertown, - - - - - 310,000 
 Second Mortgage do., from Junction to Columbus, for 
 City bonds, - - - - - — 200,000 
 Third Mortgage do., from Junction to Watertown, $150,000 
 less $32,000, - - - - - 118,000 
 Watertown City Bonds, $80,000, less $4,600, - 75,400 
 Columbus and other Town Bonds, $65,000, less $33,000, 382,000— 135,400 
 $2,299,400 
 To which add proposed new loan of - - - 8,000,000 
 Total, - $10,299,400 
 
 From which it appears that the land fund alone will be sufficient to dis- 
 charge the entire indebtedness of the Company, and leave a surplus of 
 $3,315,400, to be divided among stockholders; which is more than the 
 whole amount of stock now issued and outstanding. In addition to the 
 foregoing, there was an issue of bonds for two hundred thousand dollars by 
 the Watertown Co., on a first mortgage from Watertown to Columbus, 
 which, however, have not been sold, and will be retired, after the payment 
 of some inconsiderable liabilities, for which a part of them are hypothe- 
 cated; and also an issue of one million convertible 7 per cent. bonds, on 
 account of the North-western Division, which have been used in part only 
 for the purchase of Depot grounds, and surveys and expenses incidental to 
 
14 
 
 that part of the line, which, however, are included in the foregoing estimate 
 of $10,230,000, and will be retired from the proceeds of the new loan, or 
 from sales of stock shares of that Division. 
 
 The stockholders will be the beneficiaries in this plan of operations, 
 and in the end will receive, in the shape of stock dividends, the full 
 amount for which the land shall be sold. To effect this, so that all parties 
 may derive equal benefit from the sales as they are made from year to year, 
 as often as the Trustees shall sell any portion of the land, and deposit the 
 proceeds to the credit of the sinking fund, and thereby cancel, or provide 
 for the payment of the same amount of the Company’s bonds, a stock 
 dividend will be made to the same aggregate amount, among the stock- 
 holders at the time, being pro rata to the amount of shares held by each. 
 All that the land might sell for over and above the indebtedness of the 
 Company, would, of course, be a sum to be divided among the stockhold- 
 ers; and it might well be, and I have but little doubt the fact will be so, 
 that in addition to a division of stock shares equal to the indebtedness of 
 the Company, an amount over and above will be received, sufficient to 
 reimburse the holders of the stock the amount paid for the shares originally 
 purchased before such dividends were made. If such a result should be 
 realized, each original holder of a share will be the possessor of three full 
 shares, and, in addition thereto, will be reimbursed the amount paid for the 
 original share. But at any rate, whether such surplus remains to be divid- 
 ed or not, whenever the bonds of the Company are paid, every holder of 
 an original share must be the holder of three shares, so that at the most, 
 though he paid par for the original share, yet the three shares cannot have 
 cost but 33 per cent. of their par value. In the mean time, while the road 
 is being built, and this process of liquidation going on, the holder of each 
 share of the general stock of the Company will be in the regular receipt 
 of dividends from the road earnings, while the holders of division stock, or 
 stock on the unfinished divisions, will be equally in receipt of interest on its 
 par value at the rate of 10 per cent. per annum, payable in the stock of 
 such division. And I will remark, that stock hereafter subscribed will 
 be division stock, and not the general stock of the Company, until those 
 divisions are severally completed, and consequently not entitled to dividend 
 of earnings until then, but will be entitled to ten per cent. per annum in- 
 terest in the mean time. To render this operation more clear, I make the 
 following extracts from the By-Laws of the Company: 
 
 “See. 8. The railroads of this Company, for the purpose of construc- 
 tion, are hereby divided into the following divisions, viz.: The Eastern, 
 Western, Watertown, North-western, and Portage Divisions. 
 
15 
 
 “Ist. The Eastern Division shall embrace the road from Milwaukee, by 
 way of Schleisingerville, to Portage City. 
 
 “2d. The Western Division shall embrace the road from Portage City 
 to La Crosse. 
 
 “3d. The Watertown Division shall embrace the road from Milwaukee 
 by way of Watertown to Portage City, or to the intersection of the East- 
 ern Division. 
 
 “4th. The North-western Division shall embrace the road from Port- 
 age City to the point of intersection with the road from St. Croix River or 
 Lake to the west end of Lake Superior. 
 
 “5th. The Portage Division shall embrace the road from Madison to 
 Portage City. r 
 
 “ The stock of each Division shall be separate and distinct from every 
 other Division, until such Division shall be completed, so as to be operated 
 throughout, and until the first dividend day after such Division shall be so 
 completed, when it shall no longer be kept separate, but become a part of 
 the general stock of the Company. The stock of the Eastern Division 
 shall be general stock of the Company from and after the last day of June, 
 1856. Separate books shall be kept for each Division, in which shall be 
 
 kept separate accounts of all receipts and expenditures on account of the 
 construction and operating of such Division, until the stock of such Divi- 
 sion becomes a part of the general stock, in the same manner as though it 
 were a separate corporation. 
 
 “Sec. 22. On the first day of July in each year, wntel a dividend shall 
 be declared, each stockholder shall be credited with interest at the rate of 
 ten per cent. per annum, on all payments made by him, or standing to his 
 credit on account of stock, from the date of such payment or credit. And 
 in case any stock, standing in the name of such stockholder, shall not be 
 fully paid, the amount of such interest shall be placed to his credit, in part 
 payment of such stock. In other cases, certificates for such interest, pay- 
 able in stock, shall be issued, which shall be transferable by delivery.” 
 
 These regulations operate for the benefit of both classes of stockhold- 
 ers ; first, by securing to the holders of general stock certificates, the ex- 
 elusive right to the earnings of the finished portions of the road, in the 
 shape of dividends, without being diminished, as such dividends would be, 
 if all new stock issued upon the several divisions were to participate in 
 common. And the new stock which may be issued on construction ac- 
 count of any Division, is better placed, being entitled to 10 per cent. per 
 annum interest until the completion of that Division, than it would be to 
 participate in a reduced dividend, which would be a necessary consequence 
 
16 
 
 of making a dividend on more shares than were issued upon the road in 
 actual operation. We have deemed this to be the most fair and equitable 
 arrangement practicable between the different classes of stockholders, while 
 the different divisions are in process of construction; but when all parts 
 are completed, then all stock will stand upon exact equality. 
 
 On the accompanying map, the lines of the La Crosse road are colored 
 in red, while all branch or tributary roads of other companies are colored 
 in blue. A mere glance at the map, exhibits our commanding position, 
 and carries conviction to the mind without argument, that it is the only 
 great artery along which must flow the business of the largest scope of the 
 finest country which can be found tributary to any one road in the United 
 States. The business of the Upper, Mississippi surprises every one who 
 visits that country. There are now some forty steamboats plying on the 
 river above Galena, and all doing a full and profitable business. The travel 
 alone to and from that country, which would pass over the La Crosse road 
 at this time if completed to La Crosse, would make it one of the best pay- 
 ing roads in the country. The emigration is immense, and flowing in an 
 increasing tide every year. The business travel and intercourse are incredi- 
 bly large, and increasing in a rapid ratio. The importation of merchan- 
 dise and the general traffic, are keeping pace with the settlement of the 
 country, and are already very large, but increasing at a pace requiring 
 largely increased facilities. All these, to a very great extent, will pursue 
 the track of the La Crosse railroad, and place it in the foreground of divi- 
 dend-paying railroads, from the moment it shall be opened to the bank of 
 the Mississippi at La Crosse. 
 
 By the time our road reaches that point, a road will have been com- 
 menced on the west bank of the Mississippi, taking its course to the south 
 bend of the St. Peter’s River, and thence up its valley and across the vast 
 expanse of plain, some five hundred miles, touching the upper section of 
 the Missouri ; making tributery to our road the southern part of Minne- 
 sota; while from our northern terminus at St. Croix, as before mentioned, 
 a road to St. Paul will be in the full tide of successful operation ; and 
 thence extending through the central part of Minnesota, on the great route 
 towards the Pacific, railroad facilities will be in rapid progress, bringing to 
 our road the rich tribute of the central tract of that territory; while yet 
 again, extending to the north, we shall find in a state of forwardness, if 
 not completed, the St. Croix and Lake Superior road, bringing to us the 
 valuable trade and travel of Northern Wisconsin and Minnesota. Our 
 position and facilities will be such, as almost with certainty to give us the 
 greater part of the trade of the Upper Mississippi, embracing the whole of 
 
17 
 
 Minnesota, which, with one-half of the State of Wisconsin, will embrace 
 an area equal to two of the largest States of the Union, and an amount of 
 business beyond computation. If any stockholder in our road desires to 
 know its value, he ought to visit in person that country, and see with his 
 own eyes the sources from whence it will draw its support, whereby he 
 would be convinced by stronger and more abundant evidence than the 
 descriptions of any third party could impress on him, however eloquent 
 and glowing they might be. 
 
 To say that our road, when completed, would pay annually a dividend 
 of twenty per cent., would not be in any way to exaggerate the facts. The 
 Galena and Chicago road has done this for seven successive years, and a 
 part of the time against a sharp competition. If that could be done by 
 means of the trade of the Upper Mississippi, when it was not one-tenth its 
 present amount, why can it not be done now, by a road equally command- 
 ing it, when so largely increased? Like causes will ever produce like re- 
 sults; and there can be no more doubt of that result being realized, than 
 that the road shall succeed in reaching the Mississippi. Let the cause be 
 rendered active, and the effect must surely and inevitably follow. If, 
 therefore, we have a road, the legitimate business of which will pay a divi- 
 dend of 20 per cent. per annum on the par value of its stock; and if this 
 stock really stands the holder in only 33 per cent. of that value, it follows 
 that his income is pretty well towards an hundred per cent. per annum of 
 his investment. . Such, [ doubt not, will be the actual result with those 
 original holders who have the sagacity to hold their stock long enough to 
 allow these causes to operate. But with purchasers subsequent to the sale 
 of the lands, the case will be different, as they will have to pay the advan- 
 cing price of the stock, as its value becomes known. Still it will always be 
 largely a productive stock, and it is not probable that its market value will 
 ever be so great, but it will pay a largely remunerative dividend on its 
 cost. 
 
 BYRON KILBORN, PrEs’t, 
 
 L. C. AND MIL. R. R. CO. 
 Nov. 5, 1856. 
 

 
ACT OF CONGRESS. 
 
 
 
 AN ACT 
 
 GRANTING PUBLIC LANDS TO THE STATE OF WISCON- 
 SIN, TO AID IN THE CONSTRUCTION OF RAIL ROADS 
 IN SAID STATE. 
 
 Section 1. Be tt enacted by the Senate and House of Rep- pene tai 
 resentatives of the United States of America, in Congress assem-t° *i¢ in 
 ing a road 
 
 bled, That there be, and is hereby, granted to the State of Wis- 4%." maai- 
 
 consin, for the purpose of aiding in the construction of a rail $0" 01, Co: 
 
 road from Madison, or Columbus, by the way of Portage City to hake Supe- 
 
 the St. Croix river or lake, between townships twenty-five and 
 
 thirty-one, and from thence to the west end of Lake Superior ; and 
 
 to Bayfield; and also, from Fond du Lac, on Lake Winnebago, ,, Also, from 
 : : ond duLac 
 
 northerly to the State line, every alternate section of land desig- northerly to 
 
 ; 2 , ‘ f ~_ State line, 
 
 nated by odd numbers, for six sections in width on each side of said 
 
 roads, respectively. But in case it shall appear that the United 
 
 States have, when the lines or routes of said roads are definitely 
 
 fixed, sold any sections or parts thereof granted as aforesaid, or that 
 
 the right of pre-emption has attached to the same, then it shall Lawful for 
 
 : gent : 
 
 be lawful for any agent, or agents, to be appointed by the Gov- pointed b'y 
 
 : Governor to 
 
 ernor of said State, to select, subject to the approval of the Sec- select lands. 
 retary of the Interior, from the lands of the United States 
 nearest to the tier of sections above specified, as much land, in 
 alternate sections, or parts of sections, as shall be equal to such 
 lands as the United States have sold or otherwise appropriated, 
 
 or to which the right of pre-emption has attached, as aforesaid, 
 
2074. Be, 
 
 \. 
 which lands (thus selected in lieu of those sold, and to which 
 pre-emption has attached as aforesaid, together with the sections 
 and parts of sections, designated by odd numbers as aforesaid, 
 and appropriated as aforesaid) shall be held by the State of 
 Wisconsin for the use and purpose aforesaid : Provided, That 
 
 Lands loca- that the lands to be so located shall in no case be further than fif- 
 
 ted to be not J 
 
 more than 15 teen miles from the line of the roads in each case, and selected 
 
 line of road. for and on account of said roads: Provided further, That the 
 lands hereby granted, shall be exclusively applied in the con- 
 
 Lace 8 pe struction of the road for which it was granted and selected, and 
 
 apPiraction Shall be disposed of only as the work progresses, and the same 
 of road. shall be applied to no other purpose whatsoever. And provided, 
 further, That any and all lands reserved to the United States by 
 
 Lands re- 2ny act of Congress, for the purpose of aiding in any object of 
 served to U- internal improvement, or in any manner for any purpose what- 
 
 nal improve- A A , 7 
 monte ed, Soever, be, and the same are hereby, reserved to the United 
 
 ded trom op- States from the operation of this act, except so far as it may be 
 
 this act. —_ found necessary to locate the route of said rail road through such 
 reserved lands, in which case the right of way only shall be 
 granted, subject to the approval of the President of the United 
 States. 
 
 Sec. 2. And be it further enacted, That the sections and 
 parts of sections of land which, by such grant, shall remain to 
 the United States, within six miles on each side of said roads, 
 
 ae shall not be sold for less than double the minimum price of the 
 maining to public lands, when sold; nor shall any of the said lands become 
 
 US. not to b : ; 
 cola tortom subject to private entry until the same have been first offered at 
 
 ree coal: public sale at the increased price. 
 
 of pablic SEC. 3. And be it further enacted, That the said lands 
 
 me hereby granted to said State shall be subject to the disposal of 
 the Legislature thereof, for the purposes aforesaid, and no other; 
 and the said rail roads shall be and remain public highways for 
 
 Railroads to the use of the government of the United States, free from toll or 
 
 pe free rom other charge upon the transportation of property or troops of 
 
 Poy atl.8, the United States. 
 
 Sec. 4. And be it further enacted, That the lands hereby 
 granted to said State shall be disposed of by said State only in 
 the manner following, that is to say: That a quantity of land 
 
 Manner of not exceeding one hundred and twenty sections, and included 
 
 disposing of |. ; ’ i 
 lands, within a continuous length of twenty miles of roads respectively, 
 
21 
 
 may be sold; and when the Governor of said State shall certify 
 to the Secretary of the Interior that any twenty continuous miles 
 of either of said roads are completed, then another like quantity 
 of land hereby granted may be sold ; and so, from time to time, , Said lands 
 i : 4 4 to revert to 
 until said roads are completed; and if said roads are not com- government. 
 nas ifroad be not 
 pleted within ten years, no further sales shall be made, and the completed in 
 : n 5 
 land unsold shall revert to the United States. ah ae 
 Sec. 5. And be it further enacted, That the United States Transporta- 
 mail shall be transported over said roads, under the direction of meer 
 the Post-office Department, at such price as Congress may, by 
 law, direct: Provided, That until such price is fixed by law, the 
 
 postmaster general shall have the power to determine the same. 
 
 Approved June 3, 1856. 
 
ACT OF THE LEGISLATURE. 
 
 
 
 ANG OL, 
 
 TO GRANT CERTAIN LANDS TO THE LA CROSSE AND 
 MILWAUKEE RAIL ROAD COMPANY, AND TO EXECUTE 
 THE TRUST CREATED BY AN ACT OF CONGRESS, EN- 
 TITLED “AN ACT GRANTING PUBLIC LANDS TO THE 
 STATE OF WISCONSIN, TO AID IN THE CONSTRUCTION 
 OF RAIL ROADS IN SAID STATE;” 
 
 APPROVED JUNE 3, 1856, 
 
 The People of the State of Wisconsin, represented in Senate 
 and Assembly, do enact as follows : 
 
 » Beta! Szotion 1. The La Crosse and Milwaukee Rail Road Com- 
 
 to build road j ; yi 
 from Moa pany is hereby authorized and empowered to survey, locate, con 
 
 eee pe struct, complete, and perpetually to have, use, maintain and 
 way of Bort operate rail roads with one or more tracks or lines, from the city 
 age City, to : 
 Lake Supe of Madison, in the county of Dane, and from the village of 
 r e 
 Bayfield. | Columbus, in the county of Columbia, on the most direct and 
 feasible route, by the way of Portage City, to the St. Croix river 
 or lake, between townships twenty-five and thirty-one, and from 
 thence to the west end of Lake Superior, and to Bayfield; and 
 shall have, possess, exercise and enjoy the same rights, privileges, 
 functions, franchises, authority and immunities with reference to 
 Compa: 
 tohavesame the said routes, or any rail road to be built thereon, as it now 
 powers, &c. 
 in relationto possesses or enjoys, with reference to any route it is now author 
 astoold. ized to occupy, or any rail road built or to be built thereon; and 
 there is hereby conferred upon the La Crosse and Milwaukee 
 
 Rail Road Company, all the power and authority contained in 
 
23 
 
 the charter of said Company, and in the acts amendatory thereof, 
 for the purpose of carrying out the objects of this act, and of ap- 
 propriating and applying the lands hereinafter in this act granted, 
 or their proceeds, to aid in the construction of rail roads by this 
 act authorized to be built. 
 
 Sec. 2. The said roads shall be constructed on the most 
 direct and feasible routes from Madison to Portage City, and 
 from Columbus to Portage City, and simultaneously as nearly as 
 practicable; and both of them shall be completed by the last 
 day of December, A. D. 1858. And for the purpose of esti- 
 mating and selecting lands granted by Congress, the city of 
 Madison is hereby designated as the point of commencement of 
 said road, and the whole of the rail road hereby authorized to 
 be constructed, shall be constructed by said La Crosse and Mil- 
 waukee Rail Road Company, within ten years from the third day 
 of June, A. D. 1856. 
 
 Sec. 3. The said La Crosse and Milwaukee Rail Road 
 Company shall never set up the defence of usury, to any contract 
 in any court whatsoever; it may purchase and own rails, chairs 
 spikes, engines, tenders, cars, and all other things necessary and 
 useful for the construction or operation of a rail road, and sell 
 the same; and it shall also have power and authority to operate 
 its said roads, or either of them, in connection with any and all 
 other rail roads which may cross, come up to, or connect with the 
 said rail roads, or either of them, upon such terms as shall be 
 mutually agreed upon by an? between the said Companies: 
 Provided, however, That the said La Crosse and Milwaukee Rail 
 Road Company, in making any such contract as last aforesaid, 
 shall give no preference to one company over any other such 
 company or companies, as last above mentioned, but all such 
 companies shall be put upon the same equal terms; and pro- 
 vided, also, that if the said La Crosse and Milwaukee Rail Road 
 Company, and such other rail road company as may desire a 
 running connection with the same, shall at any time not be able 
 mutually to agree upon the terms of such connections, then, and 
 in that case, either party may apply to the Circuit Court of the 
 Circuit in which said connection may be sought, and the said 
 Cireuit Court shall appoint three Commissioners, whose duty it 
 shall be forthwith to proceed to examine and adjust the terms 
 on which the said connection shall exist, and the said award of 
 
 Both roads 
 to Portage 
 City to be 
 built simul- 
 taneously, & 
 by last day 
 of Dee. 1858, 
 
 Madison the 
 point ofcom 
 mencement. 
 
 Whole road 
 to be con- 
 structed in 
 ten years. 
 
 Company 
 not to plead 
 usury. 
 
 May pur- 
 chase, man- 
 ufacture and 
 sell rails and 
 other things. 
 
 May operate 
 in connecti’2a 
 with other 
 Toads. 
 
 To give no 
 preference. 
 
 If compa- 
 nies cannot 
 agree, court 
 to appoint 
 commiss’rs. 
 
Lands grant: 
 ed by Con- 
 gress to the 
 State are giv- 
 en toLaC,. & 
 M. R. R. Co. 
 
 Land to be 
 applied to 
 the road for 
 which it is 
 granted, and 
 disposed of 
 only as work 
 progresses, 
 
 Whenever 
 20 miles 
 completed, 
 240 sections 
 to vest in 
 company. 
 
 When 20 
 more miles 
 completed, 
 120 more 
 sections to 
 vesi in Com 
 pany, and so 
 trom time to 
 time until 
 roadsare 
 
 completed. 
 
 24 
 
 terms of connection shall be filed in the office of the Secretary of 
 
 State, and shall be binding on both parties for the term of two 
 years ; such application shall be on not less than ten days’ notice 
 in writing, to be given by the party making such application, to 
 the adverse party. 
 
 Src. 4. For the purpose of aiding in the construction of 
 the rail roads—which, by this act, the said La Crosse and Mil- 
 waukee Rail Road Company is authorized to construct—all the 
 interest and estate, present and prospective, of this State, in, or 
 to any, and all the lands granted by the government of the Uni- 
 ted States to the State of Wisconsin, for the purpose of aiding 
 in the construction of a rail road from Madison or Columbus, by 
 way of Portage City, to the St. Croix river or lake, between 
 townships twenty-five and thirty-one, and from thence to the 
 west end of Lake Superior, and to Bayfield, by virtue of an act 
 of Congress entitled “An act granting a portion of the public 
 lands to the State of Wisconsin, to aid in the construction of 
 rail roads,” approved June 3d, 1856, together with all and singu- 
 lar the rights, privileges and immunities conferred, or intended 
 to be conferred, by the said act of Congress, are hereby granted 
 to the said La Crosse and Milwaukee Rail Road Company ; 
 provided that the said land shall be exclusively applied in the 
 construction of that road, for which it was granted and selected ; 
 and shall be disposed of only as the work progresses, and the 
 same shall be applied to no other pérpose whatsoever; and Pro- 
 vided further, That the title to said lands shall vest in the said 
 La Crosse and Milwaukee Rail Road Company, in the manner 
 following, that is to say, whenever twenty continuous miles of 
 said road shall have been completed, so as to admit of running 
 regular trains on the same, the Governor of this State shall cer- 
 tify to the Secretary of the Interior the fact that such twenty 
 continuous miles of such roads are completed as aforesaid, then 
 the title to two hundred and forty sections of said lands shall 
 vest in the La Crosse and Milwaukee Rail Road Company ; and 
 when a second continuous twenty miles of said road shall have 
 been completed, so as to admit of running regular trains on the 
 same, the Governor shall certify as before, and thereupon a fur- 
 ther quantity of one hundred and twenty sections of said lands 
 shall vest in said Company, and so from time to time, until said 
 roads are completed ; and it shall be the duty of the Governo 
 
Ya 
 
 »- 
 
 25 
 
 so to certify to the Secretary of the Interior, whenever any such 
 twenty miles are completed, so as to admit of running regular 
 trains of cars over the same; and the Governor of the State 
 shall in his official capacity, and in behalf of the State, and 
 under the great seal thereof, execute and deliver to the La Crosse 
 and Milwaukee Rail Road Company, whenever it shall by virtue 
 of the provisions of this charter, be entitled to any of said lands, 
 a deed in fee simple of any, and all of the lands, to which said 
 company shall be entitled ; provided, that said Company shall 
 not sell any of said lands until twenty miles of said road shall 
 be completed, so as to admit of running regular trains over the 
 same, and so on from time to time, so that the sales of land by 
 said Company shall never exceed six sections of land for every 
 mile of road so completed. 
 
 Sec. 5. The location and designation of the route and line 
 of the said roads shall be made by the said La Crosse and Mil- 
 waukee Rail Road Company, and the same shall from time to 
 time, and as fast as practicable, be reported to the Governor of 
 the State. The selection of lands provided for in the act of 
 
 _ Congress herein before mentioned, shall be made by such agents 
 
 as may be appointed by the Governor of the State. Such selec- 
 tion, as well as the survey, location and completion of said roads, 
 and the compensation of such agents, shall be at the cost and 
 charge of said Company, without charge of any kind upon the 
 treasury of the State of Wisconsin. Said rail roads, which shall 
 be constructed by the application of funds derived from the 
 lands herein granted, shall be, and remain public bighways for 
 the use of the government of the United States, free from any 
 toll or other charge upon the transportation of property or troops 
 of the United States, and the United States mail shall be trans- 
 ported over said roads under the direction of the post-office de- 
 partment, as provided in said act of Congress. 
 
 Sec. 6. In consideration of the grants, privileges and fran- 
 chises herein conferred upon the said La Crosse and Milwaukee 
 Rail Road Company, for the purposes aforesaid, the said Com- 
 pany shall, on or before the first day of March in each year, pay 
 into the Treasury of the State such sum as it is, by the existing 
 laws of the State, required to pay, in place of taxes upon its 
 road now constructed, or which it may hereafter construct under 
 the present charter, and, in addition thereto, it shall pay into the 
 
 Governor to 
 certify to the 
 Secretary of 
 the Interior. 
 
 Governor to 
 execute and 
 deliver deed 
 of lands, 
 
 Company 
 to sell no 
 lands until 
 20 miles 
 completed, é& 
 then only 6 
 sections for 
 every mile, 
 
 Company to 
 locate & des- 
 ignate route 
 and reportto 
 Governor. 
 
 Selection 
 of lands by 
 agents ap- 
 pointed by 
 Governor, 
 
 All at the 
 cost and 
 charge of 
 Company. 
 
 Roads to be 
 public high- 
 ways. 
 
 U. S. troops. 
 
 Mails. 
 
 Company to 
 pay percent- 
 age on earn- 
 ings, in lieu 
 of taxes, 
 
Abstract of 
 earnings to 
 be furnished 
 to State 
 Treasurer.} 
 
 Governor or 
 other person 
 appointed, 
 may exam- 
 ine books of 
 the Compa- 
 
 by. 
 
 False swear- 
 ing declared 
 perjury. 
 
 State has a 
 lien for se- 
 curing per 
 centum., 
 
 Company 
 for ever ex- 
 empt from 
 taxes, 
 
 26 
 
 Treasury of the State, on or before the first day of March in ie 
 
 each year, four per centum on the gross earnings of said road, to 
 be built by said Company, in pursuance of the power and au- 
 thority conferred by this act, for the year ending on the last day 
 of the preceding December, in place of taxes on that portion of 
 its said rail road so to be constructed; and for the purpose of 
 ascertaining the gross earnings aforesaid, an accurate account 
 of such earnings shall be kept by said Company, an abstract 
 whereof shall be furnished by said Company to the Treasurer of 
 this State, on or before the first day of February in each year, 
 the truth of which abstract shall be verified by the affidavits of 
 the treasurer and secretary of said Company, and for the purpose 
 of ascertaining the truth of said affidavits, and the correctness of 
 such abstracts, full power is vested in the Governor of this State, 
 or any other person appointea, as may be by law prescribed, to 
 examine the books and papers of said Company, and to examine, 
 under oath, the officers, agents and employees of the said Com- 
 pany, and other persons, and if any person so examined by the 
 Governor, or other authorized person, shall knowingly or wil- 
 fully swear falsely concerning the matter aforesaid, every such 
 person is hereby declared to have committed perjury ; and for 
 securing to the State the payment of the aforesaid per centum, 
 it is hereby declared that the State shall have a lien upon the 
 rail road of the said Company, and upon all other property, 
 estate and effects of the said Company, whether real, personal or 
 mixed, and the lien hereby secured by the State shall take and 
 have precedence of all demands, decrees and judgments against 
 the said Company. 
 
 The first payment shall be made on the 1st day of March 
 next after fifty miles of said road shall be completed, and such 
 payment shall be in lieu and in full of all claims of the State for 
 the grant hereby made, and in consideration of such annual pay- 
 ment, the said Company shall be forever exempt from all assess- 
 ments and taxes whatever by the State, or by any county, town, 
 city, village, or other municipal authority in the State (except 
 special taxes for the improvement of streets and side-walks), 
 upon all stock in the said La Crosse and Milwaukee Rail Road 
 Company, whether belonging to said Company or to individuals, 
 or any of its franchises, or estate, real, personal or mixed, held 
 by said Company, and necessary for the operating of said rail 
 
 r] 
 
Peng 
 
 27 
 
 road ; and said lands granted by said act of Congress, and hereby ep age 
 
 authorized to be conveyed to the La Crosse and Milwaukee Rail Upmann 
 mp 
 
 Road Company, shall be exempt from all taxation under and by from taxa- 
 tion for ten 
 
 virtue of the laws of this State, for the period of ten years after years. 
 the passage of this act, unless sooner sold, conveyed or leased by 
 the said La Crosse and Milwaukee Rail Road Company; and the 
 State shall have a prior lien upon the road of said Company, and 
 all the appurtenances and stock thereof, for all dues which may 
 accrue to the State from said corporation as herein provided, 
 After5 years 
 
 which lien of the State shall take precedence of all demands, insolajands 
 
 judgments, or decrees, against said corporation. eerriee 
 Szo. 7. Within five years after the title of such lands shall custittleg 2 
 
 become vested in the said rail road Company, the same, if any [ir Prices. 
 
 shall remain unsold, shall be offered for sale in limited quanti- Mallen ae 
 ties at fair prices, preference being given to actual settlers. 
 Src. 8. The said La Crosse and Milwaukee Rail Road 
 Company shall have full power and authority to transport per- 
 sons or property in boats, vessels, barges, or other water craft, on Company 
 may trane- 
 
 any navigable water which any portion of their rail road may portpersons 
 and proper- 
 
 _ run to, or connect with, and to receive and collect reasonable ty in boats, 
 
 vessels, &c,, 
 
 compensation for the same, and for that purpose may purchase or and may 
 own them 
 
 build and own such vessels, boats, barges, or other water craft, 
 as it may require. 
 Sec. 9. The said La Crosse and Milwaukee Rail Road company 
 
 Company shall be capable in law of taking and holding any and heli 
 lands granted by the Government of the United States, or of eee in 
 this State, to aid in the construction of rail roads, which shall be me bein 
 conveyed to said Company by this act, or by deed, or by opera- free °F 
 
 ie . ‘ : +, all other 
 tion of law; and may also mortgage or pledge, or otherwise dis- Cstate. 
 
 pose of all their right, title, claim or demand, of, in, or to any 
 
 lands, or interest in lands, granted to said Company by this act, 
 
 and in any other estate, real, personal or mixed, of which they 
 may be seized at the time of execution of such mortgage, or 
 which they may acquire subsequent thereto, in such manner and 
 on such terms as the directors may think proper. 
 Src. 10. In case the said La Crosse and Milwaukee Rail 
 Road Company shall construct the rail road which by this act it is 
 authorized to construct, or any part of it, upon or over any route, Company 
 upon or over which any other rail road company is authorized to ith other 
 
 ° ° ° ° ie vias e 
 construct a rail road, and upon or over which it has, prior to the baba ipl 
 4 a 
 
take, injure, 
 or destroy, 
 on princi- 
 ples of jus- 
 tice and 
 equity. 
 
 Mode of 
 payment. 
 
 If compa- 
 nies cannot 
 agree, 3 per- 
 sons to be 
 selected to 
 decide the 
 matter. 
 
 Act & grant 
 to be void, 
 unless com- 
 pany accept 
 it in 5 days. 
 
 Acceptance 
 to be by res- 
 olution, and 
 filed with 
 Secretary of 
 State. 
 
 If Company 
 violate the 
 act, the Le. 
 gislature 
 may repeal 
 it, 
 
 28 
 
 \ 
 passage of this act, actually surveyed or located its line of rail road, 
 
 it shall be the duty of the La Crosse and Milwaukee Rail Road 
 Company to settle with such rail road company upon principles 
 of justice and equity, for all its property and rights of property 
 which the said La Crosse and Milwaukee Rail Road Company 
 shall take, injure or destroy, and the latter company whose pro- 
 perty or rights of property shall be thus taken, injured or de- 
 stroyed, whatever the same is reasonably worth, such payment 
 to be made in money, bonds, stock or lands, or in such other 
 manner as said companies shall mutually agree. And if the 
 said companies cannot mutuatly agree upon the amount of com- 
 pensation to be made by the said La Crosse and Milwaukee 
 Rail Road Company to such other company, for the property 
 and rights of property which said La Crosse-and Milwaukee 
 Rail Road Company shall so as aforesaid take, injure or destroy, 
 then, and in that case, each of said companies shall select a dis- 
 interested engineer, and the two engineers so selected shall choose 
 a third person, and in case they cannot agree upon such third 
 person, the Governor shall appoint such third person; and the 
 three persons so selected shall constitute a board of commis- 
 sioners, whose duty it shall be to ascertain, determine, and award 
 the amount of compensation which the said La Crosse and 
 Milwaukee Rail Road Company ought, in justice and equity, to 
 make to such other rail road company, for the property and 
 rights of property which shall be so as aforesaid taken, injured 
 or destroyed. 
 
 Sec. 11. This act, and all grants herein contained, shall 
 cease and be void unless the said La Crosse and Milwaukee Rail 
 Road Company shall accept of the same within five days after 
 the passage of this act; and such acceptance shall be by a reso- 
 lution adopted by the directors of said company, a copy of 
 which duly certified by the Secretary of said company under its 
 corporate seal, within said period of five days from the passage 
 of this act, shall be deposited in the office of the Secretary of 
 State. And in case the said La Crosse and Milwaukee Rail 
 Road Company shall violate the provisions of this act, the Legis- 
 lature may repeal this act, and may revoke all and singular the 
 rights and franchises herein conferred, so far as the same has not 
 been performed and fulfilled, and so far as the rights and pri- 
 vileges hereby granted have not become complete and absolute. 
 
 e- 
 
 At 
 G/ 
 
e 
 
 S- 
 
 ‘4 99 
 
 Sec. 12. All the property which the said La Crosse and Property 
 
 $ taken is de- 
 Milwaukee Rail Road Company is authorized to appropriate, clared to be 
 
 3 ; taken for 
 take, possess, hold, use or enjoy, by making payment therefor, as Public use. 
 is in this act provided, is hereby declared to be taken for public 
 use, so soon as the said company shall so appropriate, take, 
 possess, bold or use the same. 
 
 Sec. 13. The capital stock of the La Crosse and Milwaukee 
 Railroad Company is hereby increased two millions of dollars flock, tne 
 over and above its present capital, and within three months after $2,000 000. 
 the passage of this act, said company shall open books for sub- 
 scription to such increased capital stock, after giving at least 
 thirty days’ notice thereof, in two newspapers, one published in 
 the city of Milwaukee and one published in the city of Madison. ae 
 Such books shall be opened in the city of Milwaukee, and shall ' >* °Pe™ 
 be kept open for not less than three days, and all persons shall 
 be permitted to subscribe to said stock on the payment to the Five Per 
 Treasurer of the Company of five per cent. of the amount sub- Pad ™ 
 scribed, in cash, but no one person shall be allowed to subscribe y, person 
 
 for more than two hundred and fifty shares of such stock; and to subscribe 
 
 jn case the number of shares subscribed shall exceed the amount 290 shares. 
 
 of two millions of dollars, the same shall be reduced to that 
 In case of 
 
 amount by deducting such sums as may be necessary pro rata excess, the 
 amount to 
 
 from each of the several subscriptions, and all of the shares of ee peduses 
 stock so subscribed shall be subject to calls for instalments thereon 
 
 in like manner as the other stock of said Railroad Company. Stock sub. 
 . ° ec Oo calls 
 Sec. 14. It is hereby declared, that in the judgment of the for instal- 
 , e . F ments. 
 Legislature of this State, the objects of the corporation named in - 
 
 this act, cannot be attained under or by general laws. Objects can- 
 Seo. 15. The La Crosse and Milwaukee Railroad Company ene ye 
 shall fence its road, in parcels, as it shall from time to time operate ac 
 the same, within one year after it shall commence the operating 
 of any and every such parcel, until the whole of such rail road § shal ire Ad 
 shall be in a good, proper, and substantial manner fenced through- { fee aanoatt 
 out the entire extent thereof. 
 Sec. 16. This act is hereby declared to be a public act, and act de- 
 
 the same shall, immediately after the passage thereof, be printed veolle fete 
 
and when to 
 take effect. 
 
 30 ¥ 
 
 by theState printer, and when thus published shall take effect and 
 
 be in force. 
 WILLLIAM HULL, 
 Speaker of the Assembly. 
 
 ARTHUR McARTHOUR, 
 Lt. Gov. and President of the Senate. 
 
 Approved, Oct. 11th, 1856. 
 COLES BASHFORD, 
 
ACCEPTANCE 
 
 OF THE GRANT BY THE LA CROSSE AND MILWAUKEE 
 « RAIL ROAD COMPANY. 
 
 Resolved, That an Act of the Legislature of the State of 
 Wisconsin, approved this 11th day of October, A. D. 1856, 
 entitled “An Act to grant certain lands to the La Crosse and 
 Milwaukee Rail Road Company, and to execute the trust cre- 
 ated by an Act of Congress entitled ‘An Act granting public 
 lands to the State of Wisconsin, to aid in the construction of 
 rail roads in said State,’ approved June 3, 1856, and the grants 
 of the said act made, be and the same are hereby accepted and 
 agreed to by the La Crosse and Milwaukee Rail Road Com- 
 pany, upon the terms and conditions and according to the pro- 
 visions in the said act contained. 
 
 I, Edwin H. Goodrich, Secretary of the La Crosse and Mil- 
 waukee Rail Road Company, hereby certify that a resolution, of 
 which the foregoing is a true copy, was adopted by the Board 
 of Directors of said Company, in session this day. 
 
 Witness my hand and the corporate seal of said Company 
 hereunto affixed, this eleventh day of October, A. D. 1856. 
 
 EDWIN H. GOODRICH, 
 [u. 8.] Secretary of the La Crosse and 
 Milwaukee Rail Road Company. 
 
 CERTIFICATE OF SECRETARY OF STATE. 
 Srate oF WISCONSIN, 
 Secretary’s Office. ; 
 The Secretary of State of the State of Wisconsin does here- 
 by certify, that the foregoing act has been compared with the 
 
 Resolution 
 of Company 
 accepting 
 the grant. 
 
32 
 
 original enrolled act deposited in this Office, and that the same 
 is a true and correct copy thereof, and of the whole of such 
 original, and that the foregoing resolution has been compared 
 with the copy of a resolution adopted by the Directors of the 
 La Crosse and Milwaukee Rail Road Company, certified by the 
 Secretary of said Company, under its corporate seal, in conform- 
 ity with the requirements of section 11 of the foregoing act, 
 
 Certificateof and filed in the Office of the Secretary of State this day, and 
 
 Secretary of 
 
 State. 
 
 that the same is a true and correct copy of such certified reso- 
 lution. 
 
 In witness whereof, I have hereunto set my hand and affixed 
 the Great Seal of the State, at the Capitol in Madison, this 
 Eleventh day of October, A. D. 1856. 
 
 JOHN -W. HUNT, 
 [x. 8.] Assistant Secretary of State. 
 
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