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REPORT 
 
 MDITION & PROSPECTS 
 
 OF 
 
 lINCINNATI & CHICAGO R. R. 
 
 OCTOBER, 1854. 
 
 CINCINNATI; 
 
 PUBLISHED BY JOHN D. THORPE, 
 74 WEST FOURTH STREET. 
 

 f 
 
 
 Digitized by the Internet Archive 
 in 2017 with funding from 
 
 University of Illinois Urbana-Champaign Alternates 
 
 https://archive.org/details/reportofconditioOOcinc 
 
 V 
 

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 C ASt ' 
 
 REPOKT. 
 
 The coHsolidation of the Cincinnati and Chicago, and the Cincin- 
 nati, Logansport and Chicago Railroad Companies, which was con- 
 summated on the 31st August last, by the unanimous vote of a large 
 majority of the stockholders of both companies, who attended the 
 meeting called for that purpose, has so changed the position of our 
 affairs as to render necessary a statement of the condition and pros- 
 pects of the consolidated line. 
 
 The consolidated company has assumed the corporate name of the 
 “ Cincinnati and Chicago Railroad Company,” and controls the line 
 of road from Cincinnati to Chicago ; also the road from New Castle 
 to Wabash, and from Richmond to New Castle. 
 
 EXTENT AND TERMINI OF THE ROAD. 
 
 The line of road now controlled by this Company extends from 
 Cincinnati on a direct line to Chicago a distance of 255 miles. Also 
 from Richmond, Indiana, to New Castle, 28 miles ; and from New 
 Castle to Wabash, in Wabash county, Indiana, 68 miles, making an 
 aggregate of 351 miles. We have then the main line from Cincin- 
 nati to Chicago connecting the two cities by a road of uniform guage, 
 and which exceeds the actual distance by a direct line but five miles. 
 The line from Wabash to New Castle, which will be a valuable tributary , 
 bringing upon the main line, the travel and trade of an exceedingly rich 
 and productive region of country, and by its connection at the formei 
 point with the Wabash and Erie Canal, and the Wabash Valley 
 Railroad, attract a large share of the business of those important 
 works. 
 
 The line from New Castle to Richmond, connecting at the latter 
 point with the Dayton and Western and the Eaton and Hamilton 
 I roads, will carry the business from both divisions of the road north 
 
 ; of Newcastle, intended for all the central and eastern portions of Ohio, 
 
 ^ and the local business south of Richmond. 
 
 PRESENT CONDITION OF THE ROAD. 
 
 From Richmond to New Castle, 28 miles, the road is finished and 
 in operation, and trains are run to Cincinnati by a connection with 
 
 
4 
 
 the Eaton and Hamilton, and the Cincinnati, Hamilton, and Dayton 
 roads. 
 
 From New Castle to Anderson, 22 miles, the road-bed is complet- 
 ed, the cross-ties delivered, the iron purchased, and is now being 
 laid down, and by contract is to be completed, ready for the cars by 
 the 1st day of November next. The completion of this division of 
 the road will give us a continuous line of finished road of fifty miles, 
 connecting at Anderson with the Indianapolis and Bellefontaine road, 
 and with the Eaton and Hamilton road at Richmond, thus making 
 the connection complete between Cincinnati and the Indianapolis and 
 Bellefontaine road. 
 
 From Logansport to Kokomo, 22 miles, the grading is completed, 
 the cross-ties delivered, the iron purchased, and a contract made for 
 putting it down during the present fall. At Kokomo this division of 
 the road will connect with the Peru and Indianapolis road. 
 
 Upon the central division from Anderson to Kokomo, 36 miles, 
 the graduation and bridging is nearly completed, requiring an ex- 
 penditure of less than $40,000 to prepare it for the iron. This divi- 
 sion will be completed next spring, and we shall then have a contin- 
 uous line in operation of 108 miles. From Cambridge city to New 
 Castle, 13 miles, the graduation and bridging is finished, the cross- 
 ties purchased and delivered, and the road bed is now ready for the 
 track. 
 
 From New Castle to Muncie, 19 miles, tbe grading is finished, with 
 the exception of a small amount of work on three or four sections. 
 
 F rom Cincinnati to Cambridge city, 60 miles, and from Muncie to 
 Wabash, 49 miles, a large amount of work has been done, and nu- 
 merous sections, including many bridges and culverts have been 
 completed. The whole of these divisions is under contract. 
 
 From Logansport to Chicago but a small amount of work has been 
 done. As the country over which this division of the road passes is 
 quite level, the work is very light, and the line can be prepared for 
 the iron in less than six months. 
 
 COST OF THE ROAD. 
 
 As a large portion of the work has been done and paid for, and the 
 residue is under contract at specific prices, we can form a fair esti- 
 mate of its cost, without relying upon mere conjectural estimates. 
 
 The division from Cincinnati to New Castle is under contract for 
 completion in running order, with all materials to be furnished by 
 
6 
 
 the contractors, and also rolling stock to the amount of of $150,000, 
 for $3,000,000 
 
 From Richmond to Logansport, by adding to 
 the actual cost to the Company of what has 
 been done, the specific prices for which the 
 residue is under contract, and we have as the 
 
 cost of that division 1,955,000 
 
 From JSTew Castle to Wabash 928,000 
 
 From Logansport to Chicago 1,632,000 
 
 On the last two divisions named above, the work is very light, and 
 the estimate given will fully cover the cost. 
 
 Add for right of way 100,000 
 
 Depots, Water Stations, &c 200,000 
 
 Additional rolling stock 200,000 
 
 Contingent expenses 100,000 
 
 Total $8,115,000 
 
 Making an average cost of $23,1 19 per mile. 
 
 There has been expended $2,080,438. 
 
 RESOURCES OF THE COMPANY. 
 
 Cash Stock Unpaid $798,037 
 
 Real Estate owned by Company, and held by un- 
 encumbered titles in fee simple $2,922,271 
 
 $3,720,308 
 
 This amount is in addition to the stock already collected and ex- 
 pended upon the work, and together with the proceeds of such 
 bonds as may be hereafter sold, will be applied to the further prose- 
 cution of the work, and to the discharge of the liabilities of the 
 Company. 
 
 The real estate, above specified, consists of property in the City 
 of Cincinnati and vicinity, valuable farms and unimproved lands in 
 Ohio, Indiana, and Illinois ; a large portion of which is near the line 
 of the road, and will be greatly enhanced in value by its comple- 
 tion. It has all been taken in payment of stock subscriptions, and 
 has been absolutely conveyed to the Company, by deeds in fee 
 simple. 
 
 A large amount of real estate has already been very advantage- 
 ously used by the Company in the prosecution of the work, by sale, 
 
6 
 
 by payment to contractors, by exchange for necessary materials, and 
 by using it as a basis of credit to raise money. It is proposed to 
 use the real estate still owned by the Company in the same manner. 
 
 LIABILITIES. 
 
 Unfunded debts ^425, 1 25 
 
 Income Bonds sold 12,000 
 
 Real Estate Bonds sold 369,000 
 
 Debts due for Iron Rails 200,000 
 
 $1,006,125 
 
 The unfunded debt will be discharged by the collections of stock 
 still due, in cash, and by the sale of a portion of the real estate. 
 
 The debt due for rails is expected to be paid by the proceeds of 
 Bonds, to be secured by a mortgage on the road. 
 
 The Real Estate Bonds run five years, and will be paid out of the 
 real estate upon which they are based, and which is transferred to 
 trustees, to be applied to that purpose. 
 
 BOND ACCOUNT. 
 
 Bonds to the amount of $300,000 have been issued ; secured by 
 a mortgage on the road from Richmond to New Castle, 25 miles. 
 These Bonds have been sold, and the proceeds applied to the pur- 
 chase of the iron and equipments for that portion of the road, which 
 is completed. They create a lien upon no other part of the road. 
 
 A further issue of Bonds has been made of 250,000 pounds ster- 
 ling, payable in London, in thirty years, with 6 per cent, interest. 
 These estimated at $4.84 to the pound, amount to $1,210,000. 
 These Bonds are secured by a mortgage on the line of the road from 
 Richmond to Logansport, 108 miles, subject to the prior lien of the 
 $300,000 of Bonds, secured by mortgage on the road from Rich- 
 mond to New Castle. They are, therefore, secured by a first mor- 
 gage from Logansport to New Castle, 80 miles, and by a second 
 mortgage from New Castle to Richmond, 28 miles. 
 
 The road from Cincinnati to Wabash, 143 miles, and from Logans- 
 port to Chicago, 100 miles, is wholly unencumbered by mortgage, 
 and will be mortgaged to secure such additional Bonds as it may 
 become necessary to issue. 
 
7 
 
 Of the sterling Bonds above specified, £55,000 sterling, equal to 
 ^266,200, have been sold, and the remainder are still held by the 
 Company. 
 
 SUMMARY. 
 
 Estimated cost of the road $8,115,000 
 
 Amount expended 2,080,438 
 
 Yet to be expended 6,024,562 
 
 Add liabilities for unfunded debts 425,125 
 
 Debt for Iron now purchased * 200,000 
 
 $6,649,687 
 
 This is the whole amount required to finish and fully equip the 
 road, and pay all the liabilities of the Company. The question now 
 arises, how is this amount to be paid ? This we will proceed to 
 answer. In the construction of roads in this country, ^the cost of 
 the superstructure and equipment has uniformly been paid for by 
 a sale of Bonds, secured by a mortgage on the road. In the con- 
 struction of a large number of roads, not only has the super- 
 structure and equipment been paid for with Bonds, but also a large 
 proportion of the cost of the road bed. 
 
 It is undoubtedly true, as a general proposition, that a road well 
 located through a productive country, with favorable termini, and 
 constructed at a reasonable cost, will furnish a safe basis of credit 
 to the extent of one-half its cost. If one-half the cost is furnished 
 by stockholders, capitalists may safely invest in Bonds secured by a 
 mortgage on the road, to the extent of the other half. 
 
 Calculating upon this basis, we can safely issue Bonds on the road, 
 in addition to those already issued, to the amount of $2,547,500, 
 which would make the whole issue of Bonds $4,057,500. 
 
 Deduct from this the amount of Bonds now sold $566,200, and 
 there remains $3,491,300, as the amount which may be sold. 
 Estimating these at 80 per cent., and they would produce the 
 sum of . .$2,793,400 
 
 Add to this the present resources of the Company, 
 
 as shown above 3,720,308 
 
 Making a total of $6,513,708 
 
 Which would leave a defiscit of but $135,979 of the whole amount 
 necessary to pay all the liabilities of the Company, and to fully finish 
 and equip the road. 
 
8 
 
 As it is probable that all the real estate of the Company will not 
 be disposed of before the road will be completed, and to supply the 
 deficiency of means exhibited in the foregoing statement, we propose 
 to take additional real estate, on stock subscriptions, to the amount 
 of one million of dollars. 
 
 As we are constantly receiving oflfers of real estate, we entertain 
 no doubt that we shall be able to procure that amount, at fair prices, 
 within a short time. 
 
 The value of real estate subscriptions, as a means of constructing 
 a road, has been fully proved by experience. In all the Western 
 States, real estate, both in the towns and country, has been constantly 
 increasing in value. The demand for lands and town property, in- 
 creases in proportion with the increase of population. The property 
 transferred to the Company in payment of stock, is conveyed by ab- 
 solute titles, and there can consequently be no delinquency of stock- 
 holders. With the existing demand for property of this character, 
 there can be no doubt of the ability of the Company to convert it 
 into means to construct the road. A large part of it can be sold to 
 contractors, in payment of work. Several large contracts are now 
 made, which are to be paid by the Company in this manner. A 
 portion of the real estate can be sold for cash, and a portion used as 
 a security for Bonds to run for a period of five or ten years, and 
 which will be ultimately paid by a sale of the property upon which 
 they are based. From the foregoing statements, we think it will be 
 apparent that the Company already possesses sufficient means to en- 
 sure, beyond doubt, the completion of the road. 
 
 An important inquiry remains to be answered. “ Will it pay ?” 
 The value of a public work, is to be tested by the benefits it will 
 confer upon the section of country in which it is located, and the 
 amount of profits it will afford upon the cost of its construction. 
 We are willing that the Cincinnati and Chicago Railroad shall be 
 judged by either, or both of these tests. We are satisfied that a 
 thorough examination will satisfy any impartial mind that it posses- 
 ses as many elements of strength and success, as any road in the 
 West. 
 
 The past season has been one of severe pressure upon railroad 
 interests. It has become to some extent popular to denounce the 
 railroads as the causes of the commercial embarrassments and 
 
 stringent money market,” from which the country has sufiered. 
 Railroad stocks and securities have been forced to peremptory sales, 
 when the combined influence of a want of confidence, and a scarcity 
 of money, have caused them to be sacrificed at figures far below 
 their intrinsic value. 
 
9 
 
 During the same period the finished roads in the West have 
 steadily increased their earnings, and have fully demonstrated their 
 ability to pay dividends upon their stock. 
 
 There may have been some roads improvidently commenced. 
 Rival lines may have been too eagerly pressed. But these facts 
 furnish no argument against the policy of railroads as a system. 
 The railroads of the West have already added to the wealth of the 
 country much more than the whole cost of their construction, and 
 have proved profitable to the stockholders, when properly located. 
 We might with as much propriety denounce the erection of buildings 
 in Cincinnati, or the general improvement of the country, as a waste 
 of capital, as to denounce the construction of these important chan- 
 nels of communication, so essential to our prosperity. 
 
 The construction of this road, is a matter of essential importance 
 to Cincinnati. The section of country which it traverses, furnishes 
 more trade to the city, and purchases more goods and articles of 
 manufacture here, than any other section of the same extent. No 
 section of country will be more benefitted by a road, and none will 
 furnish a better business for the road, in proportion to its cost. 
 
 The Ohio and Mississippi Road has been fostered and sustained 
 by Cincinnati, because it will furnish a speedy and direct communi- 
 cation with St. Louis. This road is equally entitled to the encour- 
 agement and support of Cincinnati, for the reason that a direct and 
 speedy communication with Chicago, is no less important than with 
 St. Louis. 
 
 We will now present our estimate of the business and profits of 
 the road, based upon the actual resources of the line of country it 
 commands, and the data, which the most ample railroad experience 
 has proved to be reliable : 
 
 ESTIMATE OF BUSINESS AND PROFITS. 
 
 In estimating the future business and profits of the Cincinnati and 
 Chicago Railroad, it is important to bear in mind that the valley of 
 the North-West is in rapid growth, and no part of it has yet reached 
 the point in which that growth becomes slow or stationary, as in old 
 countries, and indeed in some parts of the United States. The coun- 
 ties in Indiana through which this road is located have not attained a 
 third of the population they must have in a very few years, and there 
 will, of course, be a corresponding increase of their productions and 
 commerce. By a reference to the reports of any of the lines of road 
 in the West which have been in operation for a period of five years it 
 will be seen that the increase in every department of their business 
 
10 
 
 lias been constant and rapid. This increase must continue as long 
 as the population, resources, and commerce of the country -which is 
 tributary to them continues to increase. 
 
 The estimates of business presented in this report are based upon 
 the present population and resources of the country through which 
 the road passes, without making any allowance for their increase. 
 But the important fact, which has been conclusively proved by rail- 
 way experience in the West, that the business will be doubled by the 
 growth of the country in a period of seven years, must conclusively 
 counterbalance' the apprehension that the increased or supplemental 
 expenditures of construction and improvement will become a draw- 
 back on their anticipated profits. 
 
 With these preliminary remarks, we proceed to review the re- 
 sources and anticipated business of the Cincinnati and Chicago rail- 
 road, based on the present condition and production of the belt of 
 country which will sustain it. 
 
 The following table presents the territory and population properly 
 connected with this road : 
 
 I. TABLE OF POPULATION AND DENSITY. 
 
 COUNTIES. 
 Cincinnati, . • 
 
 POPULATION. 
 
 170,000 
 
 SQUARE MILES. 
 
 DENSITY. 
 
 ^ Hamilton • • • 
 
 14,000 
 
 100 
 
 140 
 
 Butler 
 
 * .** 13,000 
 
 133 
 
 75 
 
 \ F ranklin • • • 
 
 
 200 
 
 58 
 
 -J- Union 
 
 ^ Fayette* • • • 
 
 4,513 
 
 90 
 
 50 
 
 *.** 6,641 
 
 113 
 
 57 
 
 Wayne* * * * 
 
 16,458 
 
 200 
 
 82 
 
 " Henry 
 
 Madison * * • - 
 
 *.** 22,886 
 
 360 
 
 63 
 
 
 340 
 
 44 
 
 Tipton * * * * 
 
 * * * * 7,064 
 
 300 
 
 23 
 
 Howard • * * 
 
 
 300 
 
 31 
 
 Cass 
 
 * .* 14,327 
 
 350 
 
 41 
 
 Pulaski * • * 
 
 *... 5,190 
 
 400 
 
 12 
 
 Stark 
 
 
 380 
 
 U 
 
 Porter 
 
 
 350 
 
 22 
 
 Lake 
 
 
 400 
 
 14f 
 
 Cook, 111* * * 
 Chicago* * * < 
 
 5,133 
 
 68,000 
 
 450 
 
 Hi 
 
 Delaware Co., la. 14,095 
 
 440 
 
 32 
 
 Grant 
 
 
 350 
 
 41 
 
 Wabash • * * 
 
 * * * * 15,779 
 
 330 
 
 44^ 
 
 ^ Miami 
 
 
 170 
 
 42“ 
 
 " Huntington 
 
 7,850 
 
 375 
 
 20 
 
 Blackford • * 
 
 
 170 
 
 18 
 
 
 462,075 
 
 6,301 
 
 73 
 
11 
 
 IL TABLE OF PRODUCTION. 
 
 COUNTIES. 
 
 CORN. 
 
 
 WHEAT. 
 
 
 CATTLE. 
 
 , HOGS. 
 
 SHEEP. 
 
 Hamilton • • 
 
 428,246 bush 30,978 bush 4,325 
 
 9,623 
 
 2,116 
 
 J Butler 
 
 970,508 
 
 iC 
 
 107,660 
 
 it 
 
 5,517 
 
 21,270 
 
 4,577 
 
 Franklin* • • 
 
 601,289 
 
 (C 
 
 74,573 
 
 ii 
 
 8,178 
 
 22,611 
 
 7,549 
 
 ^ Union 
 
 362,121 
 
 <( 
 
 33,945 
 
 ii 
 
 3,544 
 
 18,540 
 
 4,942 
 
 -J- Fayette* * * • 
 
 520,002 
 
 
 56,081 
 
 “ 
 
 5,604 
 
 21,144 
 
 7,758 
 
 ^ Wayne * * * * 
 
 839,073 
 
 
 98,200 
 
 ii 
 
 9,897 
 
 33,265 
 
 15,927 
 
 Henry* * * * 
 
 1,222,054 
 
 t( 
 
 168,093 
 
 ii 
 
 13,470 
 
 47,264 
 
 29,654 
 
 Madison * * * 
 
 1,164,562 
 
 
 139,727 
 
 ii 
 
 19,852 
 
 47,998 
 
 20,528 
 
 Tipton 
 
 455,883 
 
 
 25,461 
 
 ii 
 
 7,102 
 
 18,116 
 
 4,760 
 
 Howard* * • 
 
 597,732 
 
 <€ 
 
 69,825 
 
 ii 
 
 9,196 
 
 26,790 
 
 7,630 
 
 Cass 
 
 994,787 
 
 a 
 
 214,782 
 
 it 
 
 17,299 
 
 35,440 
 
 14,074 
 
 Pulaski* • * • 
 
 291,830 
 
 
 82,779 
 
 ii 
 
 10,167 
 
 8,842 
 
 3,300 
 
 Stark 
 
 22,340 
 
 
 6,316 
 
 ii 
 
 1,278 
 
 2,868 
 
 711 
 
 Porter 
 
 411,310 
 
 a 
 
 141,504 
 
 ii 
 
 13,548 
 
 13,800 
 
 12,102 
 
 Lake 
 
 276,080 
 
 <c 
 
 72,778 
 
 ii 
 
 16,352 
 
 11,342 
 
 9,068 
 
 Delaware • • 
 
 * 558,682 
 
 a 
 
 71,601 
 
 ii 
 
 7,871 
 
 31,513 
 
 20,664 
 
 Grant 
 
 469,713 
 
 a 
 
 118,249 
 
 ii 
 
 10,333 
 
 16,885 
 
 11,052 
 
 Wabash 
 
 665,450 
 
 <c 
 
 153,143 
 
 ii 
 
 10,686 
 
 23,311 
 
 8,677 
 
 ^ Miami 
 
 . 337,613 
 
 a 
 
 74,363 
 
 ii 
 
 4,318 
 
 12,516 
 
 5,074 
 
 Huntington* 
 
 • 281,024 
 
 
 99,775 
 
 ii 
 
 5,240 
 
 14,675 
 
 5,610 
 
 Blackford * • 
 
 100,600 
 
 <( 
 
 27,393 
 
 ii 
 
 2,717 
 
 5,755 
 
 3,467 
 
 Aggregates • 1 1,470,799 
 
 1,867,226 
 
 ii 
 
 186,494 
 
 443,868 
 
 199,185 
 
 Surpluses. — Looking at the consumption of the people on the 
 line of the road, the probable amount of the above products for ex- 
 portation, and which can only find a market through this road, are as 
 
 follows, viz. : 
 
 ■J Cattle 62,231 
 
 :JHogs 147,966 
 
 Wheat, deducting 7 bushels for consumption of each 
 
 person 298,736 bus. 
 
 i of Corn 2,867,699 bus, 
 
 \ 
 
 By comparing this estimate with the amount of business actually 
 done by roads which have been in operation several years, and which? 
 are not more favorably located for business of this character than the 
 Cincinnati and Chicago Road, it will appear that the estimate is much 
 below the amount which will be carried on the road. The following 
 
12 
 
 are the amounts of Hogs, Wheat, and Corn carried on the roads 
 named : 
 
 
 HOGS. 
 
 34 092 
 
 Eaton and Hamilton 
 
 1 XllXXt^O 1 
 
 (45 miles) 
 
 74^886 
 
 Madison and Indianapolis (86 miles) 
 
 
 Aggregate 
 
 215 “ 
 
 290,308 
 
 Average 
 
 1 ‘‘ 
 
 1,350 
 
 CORN AND WHEAT, MANUFACTURED AND UNMANUFACTURED. 
 
 Little Miami Railroad 
 
 (84 miles' 
 
 ) 1,743,252 bush. 
 
 Eaton and Hamilton 
 
 (45 miles ^ 
 
 
 Madison and Indianapolis 
 
 (86 miles^ 
 
 
 Aggregate 
 
 215 
 
 4,498,174 bush. 
 
 At these proportions, the Cincinnati and Chicago Railroad would 
 carry as follows : 
 
 Hogs 472,500 
 
 Corn and Wheat, in bushels 7,325,350 
 
 Being much more than double the amount we have estimated to 
 the Cincinnati and Chicago road. The roads above enumerated have 
 been running several years, and have therefore had the advantage of in- 
 creased, business which a finished road in this country always attracts, 
 while the estimates for the Cincinnati and Chicago road are based 
 only upon the present actual production of a given district on the 
 line of the road. 
 
 But it is evident from this comparison, that our estimate is at least 
 within the limits of what the road will do. 
 
 The estimate of Groceries, Merchandize, Salt, Iron, Coal, and Sun- 
 dries, is based upon the amount of transportation of similar articles 
 upon roads not so favorably located for business of this character as 
 the Cincinnati and Chicago road. 
 
 This calculation gives us the following amount of way freights over 
 
 this road, to wit : 
 
 Cattle, in tons 18,678 tons. 
 
 Hogs, “ 16,896 “ 
 
 Grain, “ 94,523 “ 
 
 Coffee, 5,278 
 
 Sugar, “ 12,093 “ 
 
 Molasses, “ 6,748 “ 
 
 Merch’dz “ 34,146 “ 
 
 Sundries, 44,000 “ 
 
 Salt, “ 7,844 
 
 Coal, “ , 8,000 “ 
 
 Iron and Iron Manufactures, 14,440 “ 
 
 Aggregate tons 262,646 
 
13 
 
 THROUGH FREIGHTS. 
 
 Of the through freights between Chicago and Cincinnati, lumber 
 would constitute an important item. Chicago is well known as the 
 great lumber depot of the Lakes. Several of the Railroads entering 
 that city pass through vast forests of white pine. From this source 
 Cincinnati can be supplied through a direct line of railroad, requiring 
 no trans-shipment, at a less price than is now paid for lumber by the 
 Ohio river. The extent and variety of manufactures now success- 
 fully prosecuted at Cincinnati, would also open to the road a large 
 source of revenue, in their transportation to Chicago, where an ex- 
 tended market for them must be found. For through freights $200,- 
 000 must be regarded as a low estimate. 
 
 WAY PASSENGERS. 
 
 In order to estimate the number of way passengers upon the basis 
 of actual experience in Western railroads, the following table has been 
 constructed from the reports of five different railroads in this vicinity. 
 This table shows the density of population, the number of passengers 
 per square mile, and from these the ratio of passengers supplied 
 by any given population in proportion to its density. This be- 
 ing based upon the actual amount of travel of the same people, in the 
 same section of country, must afford a satisfactory test. The esti- 
 mate based upon such data is more likely to be under than over the 
 true amount, as with the increase of railway facilities, the locomo- 
 tive habits of the people increase, and there is a consequent increase of 
 passengers from the same section of country. 
 
 III . — Table of Way Passengers to a Given Density of Population. 
 
 Road. 
 
 Miles. 
 
 Pa'sengers 
 per lineal 
 mile. 
 
 Square 
 
 Miles. 
 
 Popula- 
 
 tion. 
 
 Den 
 
 sity. 
 
 Way 
 
 Pass’geri. 
 
 Pass’ngers 
 per square 
 mile. 
 
 Ratio of 
 pasg’r per 
 density. 
 
 L. Miami Railroad. . 
 
 84 
 
 1,810 
 
 2,520 
 
 254,331 
 
 100 
 
 152,138 
 
 60 
 
 .60 
 
 Cin., Ham. &. Day. R. 
 
 60 
 
 3,P00 
 
 1 800 
 
 250,744 
 
 140 
 
 160,000 
 
 100 
 
 .71 
 
 Madison and la. R.. 
 
 86 
 
 900 
 
 2,580 
 
 75,000 
 
 29 
 
 75,000 
 
 29 
 
 1.00 
 
 Eaton & Hamilton R. 
 
 43 
 
 1,627 
 
 1,200 
 
 30,000 
 
 30 
 
 70 000 
 
 58 
 
 1.93 
 
 Columbus (Sc Xenia K. 
 
 54 
 
 765 
 
 1,620 
 
 40,000 
 
 25 
 
 35,548 
 
 21 
 
 .84 
 
 ' Aggregates... 
 
 327 
 
 1,568 
 
 9,720 
 
 656,075 
 
 66 
 
 512,686 
 
 52 
 
 .80 
 
 The foregoing table proves that the number of way passengers is 
 in proportion to the density of population, or at least so nearly so 
 as to form a reliable basis for an estimate of business. The density 
 of population being constantly increasing with the cultivation and de- 
 velopment of the resources of the country, and the general prosperity 
 
14 
 
 of the people, until the country is well filled, there must be a con- 
 stant increase of way travel. In that part of the country embraced 
 in the operations of the Cincinnati and Chicago Railroad, the popula- 
 tion in the next twenty years will be increased three or four fold. 
 Hence in all that time the business of the road must be increasing. 
 
 The population contained in the belt of country tributary to this 
 road, is 462,135, embraced in a territory of 6,301 square miles, with 
 a density of 73 to the square mile. 
 
 This population, based upon the principles of the foregoing table, 
 would give 397,684 way passengers. 
 
 Lateral Business. — The business thrown upon trunk roads by 
 the intersection of lateral roads, is an important source of revenue. 
 
 Since the opening of the Indiana Central and the Indianapolis and 
 Bellefontaine Roads, it is ascertained that a very large portion of the 
 business arriving from the West, at Richmond, (Indiana) and Union, 
 takes its way to Cincinnati, viz., the Eaton and Hamilton, and the 
 Greenville roads. A large share of both passengers and freights 
 coming from the West on Eastern lines, takes the first direct south- 
 east route to Cincinnati. This traffic, already very large, will be con- 
 stantly increasing. ^ 
 
 The Cincinnati and Chicago Road is almost a straight line 
 North-West from Cincinnati, and is intersected by a number of 
 Eastern roads, which will bring upon it a large amount of lateral 
 business. It is intersected by the following lines : 
 
 1. Junction Road, near Brownsville. 
 
 2. Indiana Central, at Cambridge City. 
 
 3. Indianapolis and Bellefontaine, at Anderson. 
 
 4. Indianapolis and Peru, at Kokomo. 
 
 5. Logansport and Pacific, at Logansport. 
 
 6. Wabash Valley Road, at “ 
 
 7. Eel River Valley Road, at “ 
 
 8. New Albany and Salem. 
 
 9. Fort Wayne and Chicago. 
 
 These intersections are on the main line to Chicago. 
 
 The Branch to Wabash intersects — 
 
 1. Indianapolis and Bellefontaine, at Muncie. 
 
 2. Fort Wayne and Southern, at “ 
 
 3. Marion and Union, at Marion. 
 
 4. Wabash Valley Road, at Wabash. 
 
 The Cincinnati and Chicago Road, in connection with the Indi- 
 ana Central, from Cambridge City west, will be as short and 
 
16 
 
 direct a route between Indianapolis and Cincinnati, as any con- 
 structed or in progress. 
 
 The Indiana Central Road is now carrying a full share (perhaps 
 one-half) of all the travel between Cincinnati and Indianapolis, 
 transferring it to the Eaton and Hamilton Road, at Richmond. The 
 Cincinnati and Chicago Road intersects the Indiana Central, six- 
 teen miles west of Richmond — while the distance from Cincinnati 
 to Cambridge, is ten miles less than from Cincinnati to Richmond. 
 This makes the route to Indianapolis twenty-six miles shorter by 
 Cambridge, than the present route by Eaton and Richmond. It 
 is reasonable then to presume that the number of passengers which 
 will be received by the Cincinnati and Chicago Road from the 
 Indiana Central, wull be much larger than the number now re- 
 ceived from the same road by the Eaton and Hamilton, inasmuch 
 as shortening the distance between Cincinnati and Indianapolis, will 
 attract an increased amount of travel over this route between the 
 two cities. The number of passengers from Indianapolis to Cin- 
 cinnati, which now pass over the Central Road, and transfer to the 
 Eaton Road at Richmond, is at least equal to fifty per day. At 
 least twenty-five more per day pass from the Central to the Eaton 
 Road at Richmond, who take the cars on the former road at points 
 between Indianapolis and Richmond. From these facts we may 
 infer that the lateral passengers which will be received from the 
 Central Road, will be equal to at least seventy-five per day. 
 
 The Logansport and Pacific Road extends from Logansport West 
 to Burlington, Iowa, on the Mississppi river. Contracts have already 
 been made for running that road in connection with ours. The two 
 roads will make a direct line from Burlington to Cincinnati. As 
 Burlington is the depot of trade for a large portion of the upper Mis- 
 sissippi country, and of the interior of Iowa, this connection must 
 bring upon our road an amount of business far exceeding our pres- 
 ent estimate of lateral business from any one line. Without, how- 
 ever, going into a detailed estimate of the amount of business to be 
 received from each road, as we have not the same data upon which 
 to base our estimates in relation to the others, which we have in re- 
 gard to the Indiana Central, we will put the number of passengers 
 which may be received from the other roads intersected, at thirty per 
 day for each road crossed, and we have an aggregate of one hundred and 
 thirty-six thousand, one hundred and fifty five passengers per year 
 from lateral roads. From the same source will be received a large 
 amount of lateral freight. These may be estimated at 260 tons per 
 day, making an aggregate of 81,380 tons per year. 
 
16 
 
 Through Business. — By reference to the map, it will be seen that 
 Cincinnati can have but six through trunk line routes, viz: OneSouth, one 
 West, one North-West, two North, and North-East, and one East. 
 Other routes must cross these, or connect with them. The one West 
 (Ohio and Mississippi) connects Cincinnati and St Louis, and be- 
 tween that and those North, there can be no trunk line from Cincin- 
 nati, but that to Chicago. This road is on a direct and straight line 
 to Chicago. It is therefore one of the trunk radial lines. 
 
 The distance between Cincinnati and Chicago, by this road, is 255 
 miles. The run can be readily made in from eight to nine hours. 
 
 The nearest route now connecting the two cities, is 332 miles, being 
 seventy seven miles longer than the Cincinnati and Chicago road, 
 and requires a passage over five different roads of different guages, 
 rendering transhipment indispensible. No other route is projected or 
 contemplated which will lessen this difference. This road can there- 
 fore have no rival or competition, for the through business, between 
 Cincinnati and Chicago. It would be idle to suppose that a route 
 seventy-seven miles longer, and requiring transhipment, could be a 
 competitor. Capitalists who may invest their means in this enter- 
 prize, can entertain no apprehension that their investment will be di- 
 minished in value by the construction of a rival road. To make a 
 shorter line would be impossible, and a rival could only be constructed 
 by building another road alongside of this, the whole distance from 
 Cincinnati to Chicago. It needs no argument to prove that this will 
 not be attempted. 
 
 This line of road possesses extraordinary advantages in its exemp- 
 tion from competition, and this united to the importance of its termini 
 and the extreme fertility of the country through which it passes, must 
 give it a pre-eminent standing among the first class of trunk roads in 
 the West. 
 
 The Railroad from Charleston, South Carolina, to Cincinnati, is 
 now so far advanced, and such measures have been taken to secure 
 its completioji, as can leave no doubt ot its success. The completion 
 of this important line of road will effect a revolution in the trade of 
 the West, and will vindicate the sagacity of Mr. Calhoun and other 
 statesmen of the Souih, who more than twenty years ago, urged its 
 completion as a measure of vast importance to both the West and the 
 South. The distance from Chicago to Charleston, will be as follows: 
 
 Chicago to Cincinnati 265 miles. 
 
 Cincinnati to Knoxville, Tenn. 250 “ 
 
 Knoxville to Charleston, via Blue Ridge R. R.* *370 “ 
 
 Chicago to Charleston, South Carolina 875 
 
17 
 
 While the distance from Chicago to New York, by way of the 
 Lake kShore and the New York and Erie roads, (the shortest route) 
 is 965 miles. 
 
 The grain and provisions of the West are now carried to New York, 
 to be re-shipped to Charleston and other Southern ports, for consump- 
 tion there. It is not shipped to the South direct to the West, because 
 there is no direct communication, and Charleston can only be reached 
 with freights, by way of New York and New Orleans. When a 
 continuous line of railroad shall extend from Chicago to Charleston, 
 a barrel of pork or flour can be carried from Chicago to Charleston? 
 as cheap as from Chicago to New York, by railroad. 
 
 Is it not reasonable then to suppose, that a large proportion of the 
 produce now sent from Chicago to New York, will be sent through 
 Cincinnati to the South direct. This road is not to be regarded then 
 as a road from Cincinnati to Chicago merely, but as an important link 
 in a great chain of roads, connecting the extensive and fertile region 
 of Lake Michigan, with its vast net-work of railroads, and the South- 
 ern Atlantic. 
 
 The number of through passengers now passing between Cincin- 
 nati and Chicago, is ascertained to be about seventy-five per day 
 each way, upon through tickets, but as there is no direct line and 
 the travel is diffused over several routes, many passengers paying 
 upon the several roads over which they pass, without purchasing 
 through tickets, the full number can not be ascertained. The 
 through travel between the two cities, is this year more than double 
 that of last year, and the increase of this business must continue to 
 be large. In making an estimate of the through passengers, we 
 have estimated 125 per day each way, which experience will certainly 
 show is below the number which will be carried. An increase in the 
 next year, equal to that of the present year, over the past, would 
 make the number of through passengers then, nearly double the 
 number we have estimated. 
 
 SUMMARY OF BUSINESS AND PROFITS. 
 
 Having presented the data upon which our estimates of business, 
 are based, it only remains to carry out their results. 
 
 1. Of way Fkeights. — The number of tons we have estimated at 
 262,646. Estimating the average distance of transportation at 100 
 miles, and charging them at two and a half cents per ton per miles 
 the result is an aggregate of ^656,6 15. 
 
 2 
 
18 
 
 2. Of through Freights.— -This we have estimated at ^200,000. 
 
 3. Way Passengers. — These we have estimated above, at 397,- 
 604. Equating the distance on which they are carried at eighty 
 miles, which is less than experience has shown the average to be, for 
 such a length of road, and fixing the price at two and a half cents per 
 mile, and we have as the result, ^796,168. 
 
 4. Through Passengers. — These we have estimated at 125 per 
 day each way, and which at two cents per mile, would amount to 
 $399,076. 
 
 The lowest price now charged for a through ticket, between Cin- 
 cinnati and Chicago, is $9. In our estimate we have fixed the price 
 at $5.10. 
 
 5. Lateral Passengers —-These we have estimated at 136,155, 
 averaging the distance they will be carried at fifty miles, and the 
 price at two and a half cents per mile, and we have $170,193. 
 
 6. Lateral Freights. — V/e have estimated the freights to be re- 
 ceived from lateral roads, which will be crossed at 81,380 tons per 
 year, which will be but twenty tons per day for each road crossed, 
 and estimating but fifty miles as the average distance, carried at two 
 and a half cents per ton per mile, and we have as the result, $101,- 
 725. 
 
 7. Mails and Expresses, $75,000. 
 
 TABLE OF RECEIPTS AND PROFITS. 
 
 Way Freights $666,615 
 
 Through Freights 200,000 
 
 Way Passengers 795,168 
 
 Through Passengers 399,075 
 
 Lateral Passengers 170,193 
 
 Lateral Freights 101,725 
 
 Mails and Expresses 75,000 
 
 $2,397,776 
 
 Deduct for working expenses 45 per cent 1,078,999 
 
 Nett Profits $1,318,777 
 
 This shows a net profit of over ten per cent on a cost of $15,- 
 
 000,000. 
 
 In this review of the elements and prospects of the Cincinnati and 
 Chicago Railroad, three important facts must attract attention. 
 
 i. That it connects by a direct line, Chicago in the North-West, 
 
19 
 
 and Cincinnati on the Ohio river, two foci, which being united, ex- 
 tend their radii to all points in the North and South. 
 
 2. That it passes through a rich country, most of which is already 
 populous and very productive, and whose resources will rapidly and 
 largely increase railway traffic. 
 
 3. That it is entirely exempt from competition, as a line connect- 
 ing Cincinnati and Chicago, and must command the business between 
 those cities. Being a direct North-West line, it must become one of 
 the great radii of Cincinnati, and consequently a trunk line, and 
 stands prominent among the enterprises most strongly to be com- 
 mended, by its termini, its position, the section of country it com. 
 mands, and all its prospective advantages. 
 
 By order of the Board, 
 
 CALEB B. SMITH, President. 
 
 October, 1854. 
 

 
 
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