REPORT 
 
 OF THE 
 
 
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 Ckinnali, iMlmington <£ laiwsMIIe 
 
 RAILROAD COMPANY. 
 
 January 1st, 1857. 
 
 NEW YORK: 
 
 WM. C. BRYANT A 00., PRINTERS, 41 NASSAU ST., COR. LIBERTY. 
 
 1 8 5 7 . 
 
oarir of Jlimtors for 1856-7. 
 
 F. CORWIN”, Wilmington, Ohio, 
 
 D. McDEAN, Washington, Ohio, 
 
 — TALLMADGE, Lancaster, Ohio, 
 
 M. A. DAUGHERTY, Lancaster, Ohio, 
 JOHN" A. ADAMS, Zanesville, Ohio, 
 
 E. GEST, Cincinnati, Ohio, 
 
 •-One Vacancy. 
 
 —- 
 
 PRESIDENT AND SUPERINTENDENT, 
 E. GEST. 
 
 TREASURER* 
 
 J. RADEBAUGH. 
 
 ASSISTANT SUPERINTENDENT, 
 
 W. W. BAGLEY. 
 
 CASIIIEJt, 
 
 JOSEPH J. GEST. 
 
 ROAD MASTER, 
 
 JOEL T. HAM. 
 
 MASTER MACHINIST, 
 
 E. PEIRCE. 
 
 ' V. 
 
 PRINCIPAL, BUSINESS OFFICE 
 
 CINCINNATI, OHIO, 
 
A 
 
 New York, December 1st, 1856. 
 
 To E. Gest, Esq., 
 
 President of the Cincinnati, Wilmington and Zanesville 
 Railroad Company: 
 
 Dear Sir,—The non-payment of interest on the bonds of your 
 Company for the six months ending Nov. 1st, 1856, leads me 
 to ask of you, as President, a detailed and explicit statement of 
 the affairs of the Company, both since your Presidency and 
 before, (so far as you have been able to ascertain the same,) and 
 the condition and prospects of the road, so that I may answer 
 the many enquiries of the bondholders, and that they may act 
 with discretion in the premises. 
 
 Truly yours, 
 
 Geo. S. Coe, 
 Trustee. 
 
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Digitized by the Internet Archive 
 in 2017 with funding from 
 
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 if % Cincinnati, ®i:mmgtoit auir gnusbiUe 
 
 RAILROAD COMPANY, 
 
 Cincinnati, January 1st, 1857. 
 
 To the Bondholders , Creditors and Stockholders of the Cincin¬ 
 nati^ Wilmington and Zanesville Railroad Company : 
 
 The immediate and nearly total suspension of the payment of 
 
 interest and principal on the floating debt of the Company 
 
 that followed my acceptance, on July 24th last, of the position 
 
 of President and Superintendent,—the failure on the 1st of 
 
 November to pay the coupons on that day due,—the expiration 
 
 of the sixty days’ grace, allowed by terms of mortgage, before 
 
 forfeiture,—with the fact that the report dated May 1st, 1854 
 
 is the only one ever published,—indicate the necessity for 
 
 anticipating the regular annual report of the Board of Directors 
 to the stockholders. sectors 
 
 INCEPTION. 
 
 The Company derived its title and corporate powers by 
 special act of the Ohio Legislature, dated February 4th, 1851 • 
 which act refers to and makes the General Railroad Law of 
 that State, dated February 11th, 1848, with the several amenda¬ 
 tory acts thereto, the fundamental law of the corporation, and 
 invests it with all the rights, privileges and franchises necessary 
 for the construction, maintenance and operating of a railroad 
 from the city of Cincinnati to the city of Zanesville, in said 
 Ntate. In May of the same year the Company was organized. 
 
 WHEN COMMENCED. 
 
 In November, 1851, the section of the road, between the town 
 o Morrow, on the Little Miami Railroad, thirty-six miles dis¬ 
 tant, by said railroad, from Cincinnati, to the city of Lancaster 
 
4 
 
 (eighty-nine miles), was placed under contract; and in January, 
 1853, the section between Lancaster and Zanesville (42 miles) 
 was also let. 
 
 WHEN OPENED. 
 
 On the 11th of August, 1853, the section between Morrow and 
 Wilmington (twenty miles) was opened for traffic; on the 24th 
 of INovember, for the further distance of twenty miles to Wash¬ 
 ington ; on the 14th of March, 1854, to Circleville; on the 
 11 tli of April, to Lancaster ; and about the 1st of May, 1856, to 
 the junction with the Ohio Central Load, in Zanesville. In all, 
 13If miles. On the section between Morrow and the city 
 (thirty miles), nothing had been done, nor had any efforts been 
 made to provide for its construction, until after the opening of 
 the road to Zanesville. 
 
 ALIGNMENT. 
 
 So far as it is possible to judge by merely riding over the 
 road, and without the maps made from the preliminary surveys, 
 the line appears to be well located; and for all practical rail¬ 
 road purposes, may be said to be the same as a right line. 
 Eighty-eight per cent, of its length is made up of tangents. On 
 the remaining twelve per cent, there are no objectionable 
 curves. 
 
 GRADES. 
 
 As to grades, it is equally favorable; unless the two grades 
 of fifty-five feet per mile, which occur on the twenty-one mile 
 section, between Circleville and Lancaster, are considered 
 objectionable. Should they prove so, in the future working of 
 the road, they are so situated, that by using an assistant engine, 
 trains loaded to the maximum, for the other sections of the road, 
 can be made to pass them without detention, and at a small 
 additional expense. 
 
 ROAD-BED. 
 
 The road-bed was intended to be graded fifteen feet wide on 
 embankments, and twenty feet in excavatiors, at sub-grade— the 
 slopes of banks and excavations being one and a half feet base 
 to one vertical. Generally these dimensions were adhered to, 
 
5 
 
 and the road-bed finished accordingly ; excepting immediately 
 at the approaches of some of the bridges, where trestling was 
 resorted to, and at a few of the heavier cuts on the eastern 
 twenty miles of the road, where the slopes were left standing, 
 and some two or three places in embankments where the same 
 was not filled up to grade. From the steepness of the slope 
 thus adopted, a few slips have occurred; and where the em¬ 
 bankments are high, the width at top has been reduced by abra¬ 
 sion so much, that more or less widening of these banks will be 
 required during the coming two years. With the exceptions 
 stated and a moderate amount of additional side-track grading, 
 the grading of the road-bed from Morrow to Zanesville may be 
 said to be complete. Five thousand dollars expended during 
 the next three years, together with that which will be necessa¬ 
 rily done by the ditching train during the same period, will 
 complete the grading of the road-bed. 
 
 CULVERTS AND BRIDGES. 
 
 Most of the small water passages are of stone, and, with two 
 or three exceptions, are in good order. There are fifty-five regu¬ 
 lar truss bridges of wood—How’s plan. Of these, seven 
 are deck, thirty-five through, twelve low truss, and one draw. 
 Their aggregate length is seven thousand two hundred and 
 seventy-seven feet. There are also fifty-six small girder bridges, 
 measuring in length eighteen hundred and fifty-eight feet, 
 and varying in span from five to thirty feet. Nine of the 
 truss bridges, and forty six of the girder, are supported with 
 wooden bents. These bents should be replaced with stone 
 abutments and piers, as they fail, and will require about forty- 
 five hundred perches of masonry, at a cost of $24,500. This 
 expenditure will extend through the next five years. 
 
 The superstructure of all the bridges may be said to be in a 
 fair average condition, and Will require only the ordinary re¬ 
 pairs incident to similar structures. 
 
 There are wanted three or four sluice-ways ; also some extra 
 ditching alongside of the road, to prevent future overflow 
 of the track and inundation of adjoining lands. $5,000 will 
 cover this item. 
 
6 
 
 TRESTLE WORK. 
 
 There are six hundred and fifty-nine lineal feet of trestle 
 work distributed at nineteen points ; generally, however, form¬ 
 ing approaches to bridges. They should be replaced with earth 
 banks, as they decay; to do which will require an expenditure 
 of $4,000. 
 
 BALLAST. 
 
 With the exception of twenty miles, the road-bed is ballasted 
 in whole or part. The amount of ballast yet required to com¬ 
 plete the entire length and replace ballast spoiled by the track¬ 
 men, or of an improper character, is estimated to be equal to 
 one-half of the entire amount on the whole road when com¬ 
 pleted, and will require an expenditure in the next two years 
 of $31,200. 
 
 TIES 
 
 Are generally of white and burr oak; will average two and 
 a half years old; and the time is fast approaching when con¬ 
 stant regular annual renewals will be required. 
 
 CHAIRS 
 
 Are of wrought iron, of the ordinary weight and pattern. 
 
 IRON 
 
 Is of the ordinary American pattern (inverted T), weighing 
 60 lbs. to the yard. The larger portion is of European manu¬ 
 facture, and has proved of superior quality. That on the 42 
 miles east of Lancaster is of American manufacture. This not 
 having been a great while in use, its quality cannot be so 
 well judged. 
 
 SIDE-TRACKS 
 
 Are sufficiently numerous, but, unfortunately, are either not 
 long enough, in the wrong place, or badly arranged. They re¬ 
 quire more or less shifting, and should he forthwith increased 
 in length and connected at both ends (many of them being 
 spurs.) To do this work will require two hundred and fifty tons 
 of iron, which, with the other fixtures, grading and labor, will 
 cost about $22,000. 
 
7 
 
 RIGHTS OF WAT. 
 
 As a general rule, the right of way has been settled. I know 
 of only a few cases which remain unsettled. From what I know 
 of the settlements so far made, there are a number that will 
 have to be re-adjusted before the line is fenced. The amount 
 that will yet be required to adjust these rights of way I estimate 
 at $15,000. 
 
 FENCING AND CATTLE GUARDS. 
 
 Only a portion of the road is fenced, and this partly at the 
 expense of the Company and partly of the land owners. I con¬ 
 sider the amount yet to be done, equal to one line of the entire 
 length of the road, and that it will cost the Company, eventual¬ 
 ly, about $42,000. To this sum must be added about $3,000 for 
 cattle guards and joining fences. 
 
 REAL ESTATE. 
 
 The Company own no surplus real estate of any amount; 
 what there is, is mostly confined to odd pieces about present 
 depots and will be absorbed, in exchanging for other more 
 available ground at same places. 
 
 FREIGHT STATIONS. 
 
 The Company own frame freight-houses at Wilmington, Wash¬ 
 ington, Circleville and Lancaster, of sufficient capacity for imme¬ 
 diate purposes. At several minor stations there are private ware¬ 
 houses that will answer for the present. At Zanesville a freight- 
 house should be provided forthwith, as it is a large place with a 
 heavy trade; and being the junction with the Ohio Central Road, 
 the business is, to a greater or less extent, influenced by the 
 facilities for its accommodation. For the want of a building and 
 grounds, all freights are received and discharged in the street, 
 and during wet weather the business is totally suspended. The 
 coat of the freight and passenger stations, with the grounds, at 
 that place, will be about $20,000. 
 
 But little money need be expended at the subordinate sta¬ 
 tions, for building, at present. The ground and the buildings 
 can generally be secured upon favorable terms from individu¬ 
 als, subject to the control of the Company. 
 
8 
 
 WATER STATIONS. 
 
 There are fourteen stations on the road, and three more 
 wanted. They are all frame, and all are supplied with water 
 by pumping. From examinations recently made, we think that 
 water from springs can be secured and the expense of pumping 
 dispensed with, excepting at five stations. The present stations 
 are only in a passable condition ; but it is believed that the sav- 
 ing by resorting to springs, within the next eighteen months, 
 will pay the expense of re-arranging and placing them in good 
 order. 
 
 WOOD SHEDS. 
 
 Of these buildings there are none. Their number, size and 
 cost, will depend upon whether coal-burning engines are adopt¬ 
 ed generally on the road, or not; $ 12,000 will probably cover 
 their cost. 
 
 TELEGRAPH. 
 
 The Company are now in possession of a telegraph ; but it 
 is believed that its interests will be largely promoted by secur¬ 
 ing its exclusive control. For this object, negotiations are now 
 pending. 
 
 MACHINE SHOP. 
 
 The buildings belonging to this department are totally inade¬ 
 quate to the wants , as are also the tools; and being where there 
 are none of the essential facilities for procuring materials, or 
 other supplies, or for the accommodation of the men, the 
 amount of work that can be done at these shops is limited, 
 and attended with increased and unnecessary cost. The Com¬ 
 pany, therefore, decided to move them to Lancaster, where a 
 shop 63x120 feet, and round-house, of six stalls, with other 
 buildings, are in progress of erection, and expected to be ready 
 for use by the 1st of March—the citizens of Lancaster having 
 contributed $4,000 towards their construction. This is where 
 they should have been located originally, being a large and 
 flourishing county seat, sufficiently attractive to induce men of 
 families to seek employment in our shops ; and being also in 
 the immediate vicinity of the coal-field, at the junction with 
 the Hocking Canal, and where the Ohio extension of the Balti- 
 
9 
 
 more and Ohio Road, via Parkersburg and the Hocking Talley, 
 will intersect our road; also, the proper distance from Cincin¬ 
 nati (120 miles) and midway between that city and Bellaire; 
 and a proper dividing point, if our road and the Central Ohio 
 should be worked in common ; and equally favorable, should we 
 run as one road to Pittsburgh. Within the next twelve months 
 $10,000 should be expended in additional buildings and tools 
 for these shops. 
 
 ENGINE-HOUSES. 
 
 There is only one on the road ; it is situated at Morrow, and 
 built of brick ; capacity, four stalls, of which the Little Miami 
 Company own the undivided half. Until the road is built into 
 the city, this building will be inadequate to the wants of both 
 Companies, as we frequently have four engines lying over at 
 that puint; and in case the Miami Road have engines there also, 
 one or more of ours must remain unsheltered. We are now 
 building, at Putnam, and have nearly completed, one with six 
 stalls, of wood, which, with the recently erected carpenter shop, 
 and blacksmith shop, with two fires, at the same place, and 
 with the new shops and engine-house, at Lancaster, will add 
 much to the facilities for protecting and repairing the rolling 
 stock. 
 
 PASSENGER STATIONS. 
 
 The Company own the undivided half of the Morrow Station ; 
 it is a substantial frame building, built expressly for the pur¬ 
 pose, at a cost to both Companies of about $7,000. The Company 
 own no other stations of this kind ; one is wanted at Zanes¬ 
 ville, at once. Stations should also be built at Wilmington, 
 Washington, Circleville, Lancaster and Lexington, so soon as 
 the means of the Company will justify. At the other stations, 
 the freight-houses, when built, may be made to answer for some 
 years. 
 
LOCOMOTIVES. 
 
 These are sixteen in number, and the following table indicates their names and condition: 
 
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11 
 
 The condition of the machinery is not such as would be de¬ 
 sired for service. 
 
 The present master machinist, in taking charge of the shops 
 on 1st of September, reported only three engines in order, two 
 of which were passenger engines, the other a second class freight 
 engine, and that $17,600 would be required to repair them. 
 
 The three first class freight engines were so run down, that 
 they had to be sent to Niles & Co., Cincinnati, for repairs. One 
 was replaced on the road about the 1st of December, but from 
 causes beyond control, has failed two or three times, and con¬ 
 sequently done but little service, and is again in the shop. The 
 Sciota is expected to be on the track this week. To the other 
 (the Zanesville) nothing has yet been done, owing to the insuf¬ 
 ficiency of our own machine shops, and the inability of the 
 Messrs. Niles & Co. to repair more than one engine at a time, 
 and there being no other place that we could get work done. 
 For the same reasons, and which are more fully explained under 
 head of “ Machine Shops,” the master machinist has been un¬ 
 able to improve materially the condition of the engines. 
 
 Six first class freight engines are required in addition to 
 those named in table. Four of them should have been on the 
 road during the last six months ; and until they are provided, 
 the locomotive power will not only be totally inadequate, but 
 worked so closely, that it will be difficult to keep these engines 
 in fair order. The six engines will cost $62,000. 
 
 The four second class freight engines are only freight in name, 
 and wfiththe yard engine at Zanesville, are required for passen¬ 
 ger, construction and wood trains. These engines are necessary 
 for the maintenance of the powder in those particular depart¬ 
 ments and leave the freight service unprovided excepting by 
 the three engines above named. 
 
 CARS. 
 
 The Company own 8 first class passenger, 2 second class, 
 and 4 baggage cars. The number of other cars, originally pur¬ 
 chased, were 100 house, 30 box stock, 76 platform, (all of which 
 were eight wheeled); also, 80 four-wheeled gravel, 26 hand 
 and 20 small truck cars for Noadmaster’s Department. Of t'lese, 
 2 box, 2 stock and 3 platform cars are missing, and with the 1 
 
12 
 
 stock and 2 platform cars destroyed on our own road by fire, 
 during the last summer, reduces the original number of eight 
 wheeled cars from 206 to 196, now in possession of the Com¬ 
 pany. Thirty of the gravel cars have been broken up, and the 
 wheels and axles used in some new coal cars recently contract¬ 
 ed for. All the cars were found to be in a dilapidated condi¬ 
 tion. The estimated cost for putting them in order on 1st of 
 September last was $11,800, besides the cost of 400 new 
 wheels. 
 
 Within the last ninety days, I contracted for 25 coal-cars, 20 
 box-cars and 4 hand cars. Of these, T> coal-cars, 5 box-cars 
 and all the hand-cars have been delivered and are now on the 
 road. 
 
 The axles and wheels on all the passenger and baggage cars 
 should be replaced with new ones. 
 
 There should be added to the present stock during this year, 
 at least 100 box, (freight and stock) and 84 platform cars; and 
 should the Little Miami and Central Ohio Company continue 
 not to equalize, at all seasons, the mileage of our cars on their 
 road, with an equal amount of mileage of their cars on our road, 
 the number must be increased or the trade suffer, as most of 
 our business is destined to or from Cincinnati orBellaire. Thus 
 far we have been compelled to furnish the cars for nearly the 
 entire business passing to and from the former place to points 
 on our road, and much the larger portion for the business to and 
 from Bellaire. To the Wilmington Company this is a serious 
 matter, owing to her crippled finances, and to the fact that the 
 moneyed rate for adjusting car mileage is no compensation. The 
 condition of the Central road being somewhat similar to our 
 own, is an excuse for them ; but I know no valid reason why the 
 other Company did not and cannot reciprocate. 
 
 Tne cost of the 184 cars will be about $114,000. 
 
 MATERIALS. 
 
 The amount of materials of all kinds for repairs is very limit¬ 
 ed, probably not exceeding in value what is consumed in thirty 
 days. The road is also bare of fuel, and requires constant pur¬ 
 chases to be made to maintain the supply. 
 
13 
 
 ACCOUNT BOOKS. 
 
 The accounts of the Company not having been kept under 
 proper heads for railroad purposes, the erroneous distribution of 
 the various items of which they are composed, with the inaccu¬ 
 racies that pervade them, will account for any unusual features 
 or discrepancies that may appear. By way of extenuation, 1 
 will here state, that I have discovered nothing to lead me to 
 question their integrity. On the 1st of November a new set of 
 books were opened and the old ones closed, excepting for busi¬ 
 ness pertaining to the perfecting of all old matters appearing on 
 their face. 
 
 GENERAL ACCOUNT. 
 
 Balance Sheet , as per old Boohs , November 1 st., 1856. 
 
 Capital stock. $1,761,149 16 
 
 1st mortgage bonds, 1,300,000 00 
 
 2d “ “ 532,000 00 
 
 3d “ “ 104,000 00 
 
 Income “ 305,500 
 
 Bills payable. 345,932 20 
 
 L.M., C. ck X. R.R.Co. 11,394 82 
 
 Other Railroads. 1,939 73 
 
 Profit and loss. 740 07 
 
 Due individuals. 63,455 60 
 
 Trans, receipts. 398,173 61 
 
 $4,824,285 19 
 
 Right of way.. 
 
 $79,696 
 
 19 
 
 Real estate. 
 
 25,985 
 
 22 
 
 Fencing. 
 
 6,069 
 
 25 
 
 Construction. 
 
 2,012,003 
 
 36 
 
 Bridges.. 
 
 60,300 
 
 37 
 
 Iron, spikes & chairs 
 
 733,814 
 
 26 
 
 Machinery and cars, 
 
 326,732 
 
 33 
 
 Depots. 
 
 25,472 
 
 88 
 
 Machine shop..... 
 
 19,090 
 
 13 
 
 Telegraph. 
 
 6,282 
 
 50 
 
 Engineering. 
 
 51,816 
 
 18 
 
 Loss on bonds&stock, 
 
 647,198 
 
 12 
 
 Coupon & other int., 
 
 402,527 
 
 49 
 
 Commissions. 
 
 22,368 
 
 70 
 
 Contingent expense, 
 
 13,’. 59 
 
 48 
 
 Transportation “ 
 
 330,904 
 
 19 
 
 Bills receivable.... 
 
 2,052 
 
 10 
 
 Individual acct. <fcc., 
 
 45,500 
 
 49 
 
 Nominal “ 
 
 12,712 
 
 05 
 
 
 $4,824,285 
 
 1 ) 
 
14 
 
 REVENUE. 
 
 The first earnings were made in August, 1853 ; the gross re¬ 
 ceipts for that and the subsequent months of the year were 
 $10,839 00 or $2,167 80 per month : 
 
 For 1854, 
 
 January, eai 
 
 •nings 
 
 gross, $5,756 
 
 40 
 
 July, earnings 
 
 gross, 
 
 $6,704 
 
 28 
 
 February, 
 
 tt 
 
 ti 
 
 6,076 
 
 90 
 
 August, “ 
 
 tt 
 
 7,893 
 
 84 
 
 March, 
 
 ti 
 
 it 
 
 4,928 
 
 36 
 
 Sept., “ 
 
 it 
 
 9,160 
 
 16 
 
 April, 
 
 tt 
 
 tt 
 
 8,386 
 
 14 
 
 Oct., “ 
 
 ii 
 
 9,824 
 
 13 
 
 May, 
 
 ii 
 
 tt 
 
 7,370 
 
 62 
 
 Nov., “ 
 
 tt 
 
 9,732 
 
 19 
 
 June, 
 
 (( 
 
 44 
 
 Ss, 
 
 7,560 
 
 90 
 
 Dec., “ 
 
 it 
 
 12,229 
 
 96 
 
 For the 6 mos., 
 
 $40,079 
 
 32 
 
 For the 6 
 
 mos., 
 
 $55,544 
 
 56 
 
 Or per 
 
 mo., 
 
 
 $6,679 
 
 88 
 
 Or per mo 
 
 •» 
 
 $9,257 
 
 44 
 
 
 
 
 For 1855, 
 
 
 
 
 January, eai 
 
 •nings 
 
 gross, 
 
 $9,513 
 
 89 
 
 July, earnings 
 
 gross, 
 
 $8,106 
 
 69 
 
 February, 
 
 44 
 
 44 
 
 6,286 
 
 62 
 
 Aug, “ 
 
 tt 
 
 9,544 
 
 48 
 
 March, 
 
 u 
 
 ti 
 
 8,210 
 
 55 
 
 Sept., “ 
 
 ti 
 
 9,690 
 
 15 
 
 April, 
 
 u 
 
 it 
 
 9,141 
 
 99 
 
 Oct., “ 
 
 it 
 
 9,999 
 
 72 
 
 May, 
 
 u 
 
 <t 
 
 7,941 
 
 83 
 
 Nov., “ 
 
 ii 
 
 11,105 
 
 87 
 
 June, 
 
 i. 
 
 tt 
 
 7,614 
 
 72 
 
 Dec., “ 
 
 ii 
 
 18,137 
 
 94 
 
 For the 
 
 6 mos., 
 
 $48,709 
 
 60 
 
 For the 6 
 
 mo., 
 
 $66,584 
 
 85 
 
 Or per 
 
 mo., 
 
 
 $8,118 
 
 40 
 
 Or per me 
 
 
 $11,197 
 
 47 
 
 
 
 
 For 1856, 
 
 
 
 
 January, earnings 
 
 gross, 
 
 $14,426 
 
 07 
 
 July, earnings 
 
 gross, 
 
 $19,320 
 
 60 
 
 February, 
 
 44 
 
 44 
 
 12,499 
 
 95 
 
 Aug., 
 
 tt 
 
 20,703 
 
 64 
 
 March, 
 
 44 
 
 44 
 
 17,090 
 
 12 
 
 Sept., “ 
 
 44 
 
 19,790 
 
 27 
 
 April, 
 
 ii 
 
 44 
 
 19,252 
 
 95 
 
 Oct., Pas’ngrs, $8,511 96 
 
 
 
 
 
 
 
 Exp. & mail, 
 
 1,138 05 
 
 
 
 
 
 
 
 Freight, 1 
 
 2,886 53-22,536 
 
 54 
 
 May, 
 
 it 
 
 tt 
 
 15,415 
 
 01 
 
 Nov., Pas’ngrs, 
 
 6,368 1 
 
 1 
 
 
 
 
 
 
 
 Exp. & mail, 
 
 1,042 76 
 
 
 
 
 
 
 
 Freight, 1 
 
 1,934 6 
 
 5-19,345 
 
 52 
 
 June, 
 
 tt 
 
 44 
 
 15,823 
 
 14 
 
 Dec., Pas’ngrs, 
 
 6,970 48 
 
 
 
 
 
 
 
 Ex. & mail, 
 
 1,192 60 
 
 
 
 
 
 
 
 Freight, 1 
 
 7,125 07-25,288 
 
 15 
 
 For 6 
 
 mos., 
 
 
 $94,507 
 
 24 
 
 For 6 mos 
 
 •» 
 
 $126,984 
 
 72 
 
 Or per 
 
 mo., 
 
 
 $15,751 
 
 20 
 
 Or per mo 
 
 
 $20,582 
 
 12 
 
 Making an aggregate earning for the twenty-nine months of $443,249 29. 
 
15 
 
 After closely observing the trade of this road, we suppose the 
 earnings for the last six months would have averaged not less 
 than $25,000 per month, if the Company had been supplied 
 with a sufficiency of machinery and cars, and had these been in 
 order ; and for the first half of the present year would not have 
 been far from $35,000. This latter earning will, however, not 
 be made, owing to the fact, that the inability of the Company 
 to carry the freights away promptly heretofore, deterred ship¬ 
 pers from abandoning their former channels and means of 
 transport, until a certainty could be placed in the Company’s 
 ability to meet their wants. 
 
 EXPENSE OF OPERATING. 
 
 The books show the expense of operating the road from July, 
 1853, to July, 1856, twenty-three months, to be $245,522 68, 
 The following is the expense, as near as can be ascertained for 
 the last half of this year: 
 
 July . 
 
 .. $11,003 
 
 79 
 
 August.. 
 
 .. 12,533 
 
 88 
 
 September. 
 
 12,909 
 
 21 
 
 October. 
 
 .. 13,679 
 
 89 
 
 November. 
 
 .. 18,312 
 
 62* 
 
 December, estimated.... 
 
 19,500 
 
 02f 
 
 Or total per 6 mo.... 
 
 .. $87,999 
 
 41 
 
 Or per mo,. 
 
 .. $14,666 
 
 56 
 
 It seems necessary also here to say, that on taking control of 
 the road, its credit was so low that materials, fuel, &c., could 
 not be purchased excepting for cash, or on individual credit- 
 there being but a scant supply of the former, I was compelled 
 
 * During this month, the Hocking engine was paid for, amounting to $2,000, and 
 other extraordinary expenses incurred, amounting to about $1,500. 
 
 f In December, the Sciota engine was rebuilt, at an expense of $2,600, beside# 
 other large extraordinar expenditures made. 
 
16 
 
 to avoid ail expenditures possible, and had to discontinue in a 
 measure the purchase of wood, or avail myself of credit by in- 
 dividually becoming responsible in part, and thus getting from 
 three to four months’ credit for the Company, which threw the 
 payment of part of the expenses for July, August and Septem¬ 
 ber into the latter months. 
 
 I should judge the actual working expenses to be about 
 $16,000 per month, with rolling stock in good order, and will 
 augment as the business increases, but not proportionately. I 
 should say when the gross earnings reach $40,000 per month, 
 the running expenses will not exceed $20,000. As the earnings 
 increase above the latter sum, there will, if prudently managed, 
 be a reduction of per centage of expense of operating, to as low 
 as 4-0 per cent, of gross earnings—the road being peculiarly 
 adapted for an economical working. 
 
 The gross operating expenses thus far (estimating December), 
 sum up $336,522 09, and show a profit of $106,727 20. This 
 sum is purely nominal, and is fully offset by the deterrioration 
 of the perishable property of the Company. 
 
 OTHER PA.PEES. 
 
 What I have said in reference to the account books, will al¬ 
 so apply to the other papers of the Company. The engineers’ 
 papers are nearly all missing; those that are left being appa¬ 
 rently of the least value. In the General Office Department, 
 it does not appear to have been the custom to preserve the let¬ 
 ters received, or to have kept copies of letters sent. There 
 were but few papers in the office, and those that were there 
 were so filed that it would have been better, probably, had 
 they been promiscuously thrown together. I cannot better il¬ 
 lustrate the condition of the papers than by saying that up to 
 this time I have failed to discover any of the reports of the of¬ 
 ficers of the Company, exceptiug the printed report of 1854 ; 
 hence I have been compelled to get all my information thus 
 far from other sources than the Company’s papers. The conse¬ 
 quence is, no doubt, that there are valuable papers missing, 
 and expense will be incurred for want of them. 
 
 The manner of keeping and settling accounts with agents 
 
was very defective, and left room for fraud to be practised by 
 them, if so disposed. We have already discovered several er¬ 
 rors in their favor, a portion of which we have since collected. 
 
 EMPLOYEES. 
 
 Early in August, I discovered that the earnings of the road 
 had been largely anticipated, and that the employees were in a 
 state bordering on insubordination, the result, in part, of the 
 Company being four months in arrears to them for services. 
 About the 1st of August, the men struck for their back pay, 
 and, there being but little money in the treasury, compelled 
 me to supply their demands out of my private funds. Near 
 the close of the same month, a similar feeling was manifested, 
 and one of the passenger trains detained. In meeting this lat¬ 
 ter demand, all cause for further difficulty was removed, and 
 the control of the road effectualy restored to the Company. 
 
 CONDITION OF THE KOAD IN AUGUST. 
 
 On examination of the bridges, they were found to require 
 heavy and immediate repairs. Several of their abutments were 
 partially undermined, and more or less of the floor-beams of 
 these superstructures broken. The track was in a bad condi¬ 
 tion, being full of sunken joints ; ditches stopped up ; switches 
 without locks, and the main track for miles overgrown with 
 grass, so as seriously to impair the effectiveness of the loco¬ 
 motives. 
 
 The following statement shows the amount of bonds created 
 under the several mortgages and resolutions of the Company 
 the number sold, hypothecated, or in the hands of agents : 
 
 CLASS. AMOUNT. 
 
 1st mortgage, dated April 15, 1852. 
 
 Sold,.$1,300,000 00 
 
 2d mortgage, dated Feb. 18, 1854. 
 
 Sold, . . . $532,000 00 
 
 In hands of agents, . 26,000 00 
 
 Hypothecated, . 25,000 00 
 
 Unaccounted for, . 17,000 00 600,000 00 
 
 2 
 
18 
 
 3d mortgage. 
 
 Sold, . . . $104,000 00 
 
 Trust bonds, “Tres,” 100,000 00 
 Hypothecated, . 896,000 00 $1,100,000 00 
 
 Income Bonds. 
 
 Sold, . . . 305,500 00 
 
 J. Badebaugh, Tres., 150,500 00 
 <£ not filled up, 204,000 00 
 In bands of Agents, 5,000 00 
 Hypothecated, . . 535,000 00 1,200,000 00 
 
 Total amount authorized, .... $4,200,000 00 
 
 The capital, representing the entire property of the corpora¬ 
 tion, is made up of the following items : 
 
 By 1st mortgage bonds, .... 
 
 “ 2d “ “ 
 
 3d « “. 
 
 “ income, “ 
 
 “ bills payable, “. 
 
 “ amount due railroad, as per books, . 
 
 “ “ “ individuals, “ 
 
 “ claims on file not yet adjusted or recog¬ 
 nised, estimated at . 
 
 “ claims for cattle killed, . do. do. 
 
 “ capital stock, . 
 
 “ interest due on capital stock, estimated at 
 “ coupon interest past due, including the in¬ 
 terest on Clinton Co. bonds, estimated at 
 “ interest on bills, &c., past due, do. do. 
 
 $1,300,000 
 
 532,000 
 
 104,000 
 
 305.500 
 345,932 
 
 13,334 
 
 63,455 
 
 15,000 
 
 7,500 
 
 1,761,149 
 
 289.500 
 
 120,000 
 
 25,000 
 
 00 
 
 00 - 
 
 00 
 
 00 
 
 20 
 
 55 
 
 60 
 
 00 
 
 00 
 
 16 
 
 00 
 
 00 
 
 00 
 
 $4,882,371 51 
 
 To which is to be added the following sums, 
 before the 132 miles of road may be said to be 
 finished, and the capital account of the Company 
 closed, should it from any cause not be com¬ 
 pleted into the city of Cincinnati, according to 
 the original intention of its charter and pro¬ 
 jectors :— 
 
19 
 
 For grading, .... 
 
 $5,000 
 
 u 
 
 culverting and bridging, 
 
 24,500 
 
 u 
 
 ditching and sluices, 
 
 5,000 
 
 u 
 
 trestle work, 
 
 4,000 
 
 « 
 
 ballast, .... 
 
 31,200 
 
 c< 
 
 three miles siding, . 
 
 22,000 
 
 u 
 
 unsettled rights of way, esti¬ 
 
 
 
 mated at ... 
 
 15,000 
 
 u 
 
 fencing, .... 
 
 45,000 
 
 a 
 
 buildings, .... 
 
 10,000 
 
 M 
 
 wood sheds, .... 
 
 12,000 
 
 « 
 
 machine shops and engine houses, 
 
 10,000 
 
 « 
 
 telegraph, .... 
 
 6,000 
 
 U 
 
 locomotives, .... 
 
 80,000 
 
 u 
 
 cars for coal and freight, 
 
 120,000 
 
 a 
 
 real estate, .... 
 
 15,000 
 
 a 
 
 2d class and baggage cars, 
 
 7,200 
 
 u 
 
 eight passenger cars, 
 
 16,000 
 
 u 
 
 sundries, .... 
 
 10,000 
 
 $437,900 00 
 
 Or per mile $40,305, or for whole 132 miles, $5,320,271 51 
 
 Of that sum there will be repre¬ 
 sented by stock, . . .$2,050,649 16 
 
 Do. bonds and debts, . . 3,269,622 35 
 
 Rating the interest on entire indebtedness, i. e ., on $3,269,622 
 35, at seven per cent., makes the sum of $228,873 56. And 
 estimating the cost of working, at 45 per cent, of the gross 
 receipts, will require an annual earning of $416,132 68, or per 
 month of $34,677 60. (See Page 15.) 
 
 GENERAL REMARKS. 
 
 Having stated the facts that seem necessary to inform the 
 reader of the actual condition of the road, its machinery and 
 finances, I shall, as briefly as possible, communicate the difficul¬ 
 ties with which the Company has had to contend, and which 
 
20 
 
 may continue to exist,—the immediate wants, and future neces¬ 
 sities of the road, as well as the prospect of its remunerating 
 those who are now pecuniarily interested in it, or may here¬ 
 after become so—with such other facts, or opinions, as may seem 
 necessary for a full understanding of the present condition and 
 future prospects of the Company. 
 
 On referring to the annexed map of Ohio, it will be seen 
 that the geographical position of the C. W. & Z. R. R. is such 
 as to command a large share of the trade and travel passing 
 between the Atlantic cities and the fertile lands of the Western 
 and Southwestern States—that the completed section extends 
 nearly across the State ; and that its termini are at intermediate 
 points , on two other great railroad lines,—that on the Little 
 Miami road being at the town of Morrow, and the other at 
 the city of Zanesville, in the Central Ohio Railroad. Thus 
 situated, by far the larger portion of her trade is dependent 
 upon one or both of those roads for transit to and from the 
 several markets of supply and demand. Equally dependent 
 on those roads are her tariff and time tables , other than those 
 of a strict local character. Also upon them devolves the regu - 
 lations for running her ears —the loading and unloading of 
 the same—the cheeking of baggage —the receiving and receipting 
 for freights , as well as the selling of more or less of her tickets , 
 and the imparting information to shippers and passengers. In 
 these several matters of detail are concentrated nearly all the 
 essential poivers to secure and control trade j therefore the 
 C. W. & Z. R. R. Co.’s through business is materially affected 
 by their acts. The same may be said of a large portion of the 
 local trade also. 
 
 Again, those two roads form a continuous road between 
 Morrow and Zanesville (via Columbus ), and their interests are 
 therefore adverse. 
 
 To these several facts is attributable a portion of the diffi¬ 
 culties attending the practical working of the road, and will, to 
 a greater or less extent, influence the'future operations ; and in 
 them, also, lies the germ of misunderstandings. It is, there¬ 
 fore, barely possible to suppose that any policy can be pursued 
 that will satisfy the demands of one road, without exciting the 
 jealousies of the others, and that nothmg short of absolute con - 
 
21 
 
 solidation of these three roads, or the extension of the C. W. & 
 Z. road mto the city of Cincinnati , on a line of its own, accord¬ 
 ing to the intention of its projectors and charter , will secure 
 positive remuneration to the capital now invested in, and re¬ 
 quired to complete it. 
 
 As consolidation involves the consent of many persons, of 
 varied interests and views, it may be said that, if practicable, 
 it could not be brought about at this time, or in time to avail 
 the C. W. & Z. Co., and it is therefore out of the question. The 
 latter course (completing the road through to Cincinnati) is the 
 alternative, and at the same time developes a local trade of im¬ 
 mediate and permanent value, and will not cost as much, it is 
 believed, all things considered, as the necessary accommoda¬ 
 tions for the business, in a proper and essential manner, by the 
 Little Miami Company. The Board of Directors have therefore 
 contracted with the Dayton and Cincinnati (The Tunnel) Com¬ 
 pany for the exclusive use of the undivided three-fifth interest 
 in that road, from Sharon to Broadway, in Cincinnati, includ¬ 
 ing a similar interest in 15 acres of depot ground. 
 
 The three-fifth interest thus secured will cost $1,500,000, in¬ 
 cluding interest; to that sum is to be added $493,700, the cost 
 of the nineteen miles between Morrow and Sharon, to be con¬ 
 structed by the C. W. & Z. Co. These amounts together, 
 show the entire cost of the extension into Cincinnati to the 
 latter Company. 
 
 The alignment of this section of the road is fully equal to that 
 of the section east of Morrow, and as to grades superior—the 
 maximum being at the rate of 47 feet per mile, and occurs only 
 at one point north of Sharon. The rest of the grades are below 
 40 feet. 
 
 The advantages of the extension are many and unequalled. 
 
 1st. It penetrates directly into the city—the depot abutting 
 on Broadway, near Court street—and thus will be able to dis¬ 
 charge and receive its freights and passengers almost at the 
 centre of busine-s, and in a pleasant part of the city. Within 
 an average distance of 800 feet of the end of the depot every 
 winter is the product of 400,000 hogs prepared for market. 
 The principal basin of the Miami Canal terminates within 150 
 feet of the end of the building and at an expense of $6,000 ; a 
 
22 
 
 elip could be constructed into the depot, and boats unloaded or 
 loaded alongside of the cars. This canal also brings to Cin¬ 
 cinnati an amount of hog product but little inferior to that pre¬ 
 pared in the city, besides large quantities of flour, whiskey and 
 other products. Thus in the immediate vicinity of the depot 
 are accumulated immense masses of produce, nearly all of 
 ■which is destined to foreign market. The saving on the dray- 
 age alone , in Cincinnati, on these products shipped at this de¬ 
 pot, will equal 33 cents per ton on that incurred if shipped at 
 the Little Miami depot, the next most favorably situated. 
 
 By reference to the annexed map of Cincinnati, this advant¬ 
 age will readily be realized. Within the smaller circle of half 
 a mile in diameter is the great heart of Cincinnati, where cen¬ 
 tres and is transacted nearly the entire commercial and finan¬ 
 cial business of the emporium of the Mississippi basin. The 
 depot of the Tunnel Company is within the circle described, 
 with a radius of half a mile—that of the Little Miami within 
 the arc of three-quarters of a mile, and that of the Hamilton 
 and Dayton Road within that of one mile and a quarter. 
 
 The depot grounds are so situated, that not a street or alley, 
 or other public ground, will be touched by the works of the road, 
 consequently no municipal control can extend to the regulation 
 of the speed of its trains. This feature, in addition to the fact 
 that for four miles out there is not a road crossing on a level 
 with its rails, will enable the trains to be worked at any speed 
 desired. This peculiarity, in connection with the saving in dis¬ 
 tance between Cincinnati and Morrow over the Little Miami 
 Road of five miles of railroad, and from a quarter to half a mile 
 of city omnibusing, will enable express trains, running at 30 
 miles an hour, to be in Morrow by the time those on the other 
 road are fairly free of municipal control; in other words, be a 
 saving of full one hour’s time whenever the municipal regula¬ 
 tions are fully enforced. 
 
 3d. The road at Sharon, being in the valley of Mill Creek ^ 
 allows by a line of easy construction two miles in length, a 
 connection to be had not only with the Miami Canal, but also 
 with the Hamilton and Dayton Railroad, near Glendale, 
 and through that road with the several railroads passing into 
 
23 
 
 Indiana from Hamilton. This will be better understood by 
 referring to the local map of southwestern Ohio, accompanying 
 this report. Through these two connections the supplying of 
 coal to the great Miami valley and eastern Indiana, will be 
 secured to our road. Again, produce coming by these same 
 avenues, destined for an eastern market, would be transferred 
 to our cars, at the points of junction, and thus the expense of 
 transportation to, and cartage through the city, avoided. In 
 fact, our road would monopolize that class of trade, as well as 
 the merchandise and wares coming from the east, in exchange 
 for these products. 
 
 4th. These depot grounds are so capacious, that about five 
 acres can be spared for coal purposes, and so situated that 
 the floor of the yard can be fixed at a level 35 feet below 
 the track, and thus afford all the facilities for storage necessary 
 to enable the Railroad Company to do the business at a rate 
 which ensures her a business, the value of which is set forth in 
 a subsequent article on the coal trade. 
 
 With this extension completed, the Company will have a 
 railway 1 62 miles long, the cost of which, with the coal equip¬ 
 ment, will not exceed eight millions of dollars. Three millions 
 of that sum will be represented by stock, and five millions by 
 bonds, (assuming that the hypothecated bonds will be restored 
 to the Company’s control). The amount required to pay the 
 interest on the bonded debt, and a similur interest of 7 per 
 cent, to the stockholders, will require an annual earning of 
 $1,120,000, estimating working expenses at 50 per cent. 
 
 It seems necessary for me here to remark, that the road passes 
 for its entire distance, over a country of extraordinary fertility, 
 under a high state of cultivation, free from miasmas or other 
 deleterious atmosphere, antagonistic to health. Although 
 partially through a grazing country, yet large quantities of 
 surplus cereals are grown for foreign market, and generally the 
 country will afford the usual proportion of freights and passen¬ 
 gers, and the thirty miles next the city an unusually large pro¬ 
 portion of the latter. Already are springing up along the line 
 buildings for manufacturing purposes, and the trade rapidly 
 conforming to this new channel to market. 
 
24 
 
 THE COAL TRADE. 
 
 The eastern forty miles of the road lies in a bituminous coal 
 field. A number of mines in Perry county are now being 
 worked, and the coal from the best of them has been tried by 
 manufacturers and families, and pronounced for most purposes 
 to rank second only to the best Younghiogeny. The average 
 distance of these mines will be about 140 miles from the city. 
 
 Owing to the insufficiency of cars and engines, this trade has 
 not been encouraged, but has had to take its chance with other 
 articles of freight; consequently the many manufacturing es¬ 
 tablishments and families, situated along the Cincinnati, Wil¬ 
 mington and Zanesville and Little Miami roads, have been only 
 partially induced to change from wood, their present fuel, to 
 coal. The present local demand from distillers and mills is 
 fully equal to five hundred thousand bushels per year, or suffi¬ 
 cient to keep one of our best freight engines and ninety cars, 
 busy for six months each year. Such being the immediate 
 wants of a country unaccustomed to coal, justifies me in assert¬ 
 ing, that the local demands for coal will, within six months after 
 the Company is able to accommodate it, be sufficient to tax 
 the daily capacity of a freight engine, for the first year, and 
 within six years thereafter increase so that the local revenue 
 from that article alone will amount to the interest on the present 
 issue of first and second mortgage bonds of the Company. 
 
 To the local demand must be added a fair proportion of that 
 required in Cincinnati, and now exclusively obtained by the 
 river from the upper Ohio. The past year’s consumption in 
 that city 7 ' would have exceeded twelve millions of bushels could 
 it have been had at a cost not exceeding 12| cents per bushel. 
 
 The amount of coal annually consumed in the valley of the 
 Ohio is so great and so rapidly on the increase, that the facili¬ 
 ties for its accommodation and transport are out-grown, and 
 there periodically occur, and will continue to occur, as long as the 
 river alone is depended upon, those extreme fluctuations in 
 price witnessed during the last six years—the price at times 
 ranging as high as 60 cents per bushel. This may seem strange 
 (as the capacity of the river to transport during half the year 
 is unlimited) to one not familiar with the irregularity and limit- 
 
25 
 
 ed periods during which it is navigable, consequently there is 
 occasioned large additional expenses for storage, either at the 
 mines, or at the city, where rents for yards are exorbitant. 
 Hence the necessity for resorting to other channels for supply¬ 
 ing not only a portion of the present wants but also the increas¬ 
 ing consumption. In fact, I feel satisfied that the future pros¬ 
 perity and continued growth of the city directly depends upon a 
 certain regular supply of coal at rates not exceeding 12 cents. 
 
 The following shows the population of the city, and the num¬ 
 ber of bushels of coal consumed at the periods stated : 
 
 Population. Coal Consumed. 
 
 1835. .estimated at 500,000 bushels. 
 
 1840. 46,338 census do do do 
 
 1850. 115,436 do do do 4,500,000 do 
 
 1854. ... .actual amount 8,158,000 do 
 
 1855 estimated 185,000.... do do 10,350,000 do 
 
 Applying the ratio of increase thus indicated to the future, 
 it will be seen, that her market is, and will be, one affording 
 certain and reliable demands. 
 
 For these several reasons, and the fact that the plateau upon 
 which the city stands is fast being absorbed by factories and 
 commercial buildings, the coal yards will be driven to more re¬ 
 mote sections of the city. I therefore feel justified in saying, 
 that when the Cincinnati, Wilmington and Zanesville Railroad 
 is completed and equiped for the trade, the coal received annu¬ 
 ally from the river will decrease materially in amount, and that 
 at least 4,000,000 bushels would be transported over the road 
 during the first twelve months, yielding to the Company, as 
 compensation for its carriage, $300,000. 
 
 The bulky character of coal, and the special facilities requir¬ 
 ed to enable it to be transported a distance of 140 miles and 
 delivered to the consumers at a fixed and paying rate, in con¬ 
 nection with the fact that the practical working of the road from 
 Morrow to Zanesville has shown the insufficiency of the Little 
 Miami entrance into the city to accommodate satisfactorily, 
 even if that corporation was so disposed, the coal trade that will 
 be necessary to the wants of the city, secures the same perpetu¬ 
 ally to our road. 
 
TABLE, 
 
 Showing the Population, the Cash Value of Farms, the Value of Farming Lands, Improvements and Machinery, and Num¬ 
 ber of Acres of Improved Land, in the several Counties through which the Roads named pass, including the country within 
 a radius of twelve and a half miles around their termini, as per the United States Census of 1850. 
 
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27 
 
 The foregoing table shows the fact, that the country through 
 which the Cincinnati, Wilmington and Zanesville Railroad 
 passes, bears favorable comparison with that bordering either 
 of the other roads, and that it will certainly afford a propor¬ 
 tionate local traffic. 
 
 From repeated analysis of the earnings of roads favorably 
 situated in Ohio and Indiana, I am satisfied that the local 
 revenue of a road under fair circumstances is not far from 
 $$to°o per inhabitant of the territory, in a belt of country 12| 
 miles in width on each side of the line, and around its termini. 
 This estimate is independent of any revenue from minerals. 
 Applying the rule to the section of the C. W. & Z. R. R., 
 between Morrow and Zanesville, 131 miles in length, and esti¬ 
 mating the population in the several counties in which it lies, 
 in 185S, at 210,000, the revenue from produce, merchandise 
 
 and passengers, would be.$462,000 
 
 From coal transportation, .... 30,000 
 
 For through business, (10 per cent, on local,) . 46,200 
 
 Gross earning for 1858, .... $538,200 
 
 A sum sufficient to cover working expenses, (45 per cent.), 
 the interest on its bonded and floating debt, and leave $60,000 
 for deterioration, or stockholders. 
 
 The estimate for through business is purely conjectural, and 
 may, or may not, be realized. (See page 20 of this report.) 
 
 Assuming the road completed into the city, and applying the 
 same rule of estimate for local business—and the estimate here¬ 
 tofore explained for the coal transportation—with a fair allow¬ 
 ance, say 20 per cent, on local business for through traffic, (a 
 per centage which would be beyond all doubt realized ,) the 
 revenue for the first year would then be as follows, (the popu¬ 
 lation being estimated at 433,483, which is 20 per cent, increase 
 over that of 1850, and the same as allowed in the other esti¬ 
 mate) :— 
 
28 
 
 From produce, merchandise and passengers, (local) $953,662 60 
 coal delivered in city and Mill Creek valley, 300,000 00 
 
 “ “ local,. 30,000 00 
 
 Through business,. 190,732 00 
 
 Gross earning,.$1,474,394 60 
 
 A sum sufficient to pay working expenses, (50* per cent.), 
 and 7 per cent, on the bonded debt of $5,000,000—and a like 
 interest of 7 per cent, on the stock, $3,000,000—with a surplus 
 fund of $177,197 30. 
 
 To allow a ready comparison with the other leading roads, 
 not dissimilarly situated, and sharing the same trade, to be 
 made, and at the same time to corroborate the foregoing esti¬ 
 mates, by applying the deduction to be drawn from their oper¬ 
 ation to ours, I present the following table, which shows their 
 cost and earnings in 1855 :— 
 
 Name of R. R. Co. 
 
 Length 
 
 Cost. 
 
 Cost 
 
 per mile. 
 
 Gross 
 
 Earnings. 
 
 Earnings 
 per mile. 
 
 
 Clev. Columbus & Cin.. 
 
 Little Miami. 
 
 Columbus & Xenia,... 
 Cin. Hamn. & Dayton.. 
 Ohio & Pennsylvania,.. 
 
 Pennsylvania . 
 
 Baltimore & Ohio,. 
 
 141 
 
 84 
 
 55 
 
 61 
 
 187 
 
 256 
 
 382 
 
 $4,613,722 
 
 3,800,000 
 
 1,570,013 
 
 2,987,757 
 
 5,670,700 
 
 18,483,489 
 
 23,031,507 
 
 $32,800 
 
 45.200 
 28,540 
 48,900 
 30,300 
 
 72.200 
 60,290 
 
 $1,290,295 
 
 678,120 
 
 339,060 
 
 471,888 
 
 1,111,626 
 
 3,533,333 
 
 3,711,453 
 
 i 
 
 $9,100 
 
 8,000 
 
 6,160 
 
 7,730 
 
 5,940 
 
 13,800 
 
 9,980 
 
 to 
 a 
 • »—« 
 a 
 
 U4 
 
 3 
 
 y 
 
 J <\ 
 
 Average. 
 
 . 
 
 $45,461 
 
 
 $8,672 | 
 
 
 o .. •••• 
 
 
 Cin. W. & Zanesville,.. 
 Cin. W. Zanesville, ) 
 including extension, ) 
 
 131 
 
 162 
 
 $5,400,000 
 
 8,000,000 
 
 $41,220 
 
 49,380 
 
 $538,200 
 
 1,474,394 
 
 $4,100 
 
 9,100 
 
 1 
 
 Est. 
 
 Do. 
 
 The country and trade which gives vitality and support to 
 those roads is identical with that occupied by the C. W. & Z. 
 R. R., and these roads in return are necessary to its further 
 development. Their actual earnings in 1855 being sufficient 
 for their support, certainly in 1858 there will be also enough 
 for the C. W. & Z. Road. The latter completed is not a rival, 
 
 * It will be perceived that I have used a larger per centage for working ex¬ 
 penses in this case than in the other. The reasons are that the coal transportation 
 is large, and the price for its carriage low. The proportionate working expenses 
 will be probably increased. 
 
29 
 
 but an auxiliary to them—a necessity to the country—the 
 channel through which Cincinnati will derive the material 
 essential to her continued growth, and the maintenance of her 
 ascendancy as the emporium of the great Mississippi basin—* 
 viz., cheap fuel . 
 
 I believe the foregoing sufficiently illustrates the power and 
 advantages that this road w T ill have when completed, and jus¬ 
 tifies me in saying that I know of no road that promises more 
 certain and reliable remuneration. 
 
 The actual cash required by the Tunnel Company and the 
 C. W. & Z. Company to complete the extension, is as follows: 
 
 From Broadway to Tunnel, § mile road-bed, $ 30,000 
 The Tunnel, 2 do do 678,375 
 
 From Tunnel to Sharon, 9-| do do 160,774 
 
 From Sharon to Morrow, 19 do do 266,000 
 
 Iron bridge across Miami at Morrow, . . . 35,000 
 
 36 miles of main and side-track, . . . 270,000 
 
 36 do ballast. 36,000 
 
 62 do fence. 24,800 
 
 $1,500,949 
 
 The most expensive, and by far largest portion of the right 
 of way, has been obtained, as well as the real estate for depot 
 purposes, and paid for. 
 
 The estimate is ’known to be in the aggregate ample ; the 
 character of the work having been fully tested, by the work 
 already done and paid for, amounting, for all purposes, to 
 $650,000. 
 
 To meet the above expenditure, the Tunnel Company have 
 an unexpended stock subscription, which is now, or can be, 
 made available towards construction of $200,000 ; also, yet in 
 their possession, $953,000 of first mortgage bonds (the whole 
 issue being $1,000,000, of which $47,000 has been paid out.) 
 These bonds are secured by a first mortgage on the assets of 
 the corporation, among which is real estate, estimated to be 
 worth $200,000, and the several sums expended, in depot 
 grounds near the business heart of Cincinnati, in rights of way, 
 and work on tunnel and its immediate vicinity, about $575,000, 
 
30 
 
 all of which has been paid for. The interest on these bonds for 
 the first two and a half years is to be paid out of a special stock 
 subscription already made, amounting to $250,000, an unusual 
 feature, and one claiming the especial attention of capitalists. 
 
 The C. W. & Z. Company will have $1,000,000 of first mort¬ 
 gage bonds on the 19 miles of road between Sharon and Morrow, 
 additionally secured by a second mortgage on the Tunnel Road, 
 from Sharon to Cincinnati, and a fourth mortgage on the pre¬ 
 sent 131 mile section of finished line. From these bonds will 
 be realized at least 70 cents on the dollar, and the resources 
 may be stated as follows : 
 
 ISlet proceeds of $950,000 1st mortgage, Tunnel, $665,000 
 Do do do $1,000,000 1st mortgage, 19 miles, 700,000 
 
 Total, $1,365,000 
 
 Leaving only $135,000 to be met by the subscription of 
 $222,000 already made. 
 
 This million issue of the C. W. & Z. Road is to have its in¬ 
 terest secured for 2| years, by a special fund, somewhat similar 
 to that of the Tunnel Company. 
 
 To make easy the financial affairs of the Company during 
 the construction of the extension, and to restore its credit,—as 
 well as to secure its early and necessary equipment, and enable 
 its business to be conducted to the satisfaction of the officers of 
 the railroad and to the community, as well as to render a large 
 amount of precarious capital certainly productive and amply 
 remunerative ,—requires that there shall be co-operation of 
 those representing the various securities of this Company, 
 proportionate to the several grades of the same. It is therefore 
 suggested that the interest on the 1st mortgage bonds past due, 
 and falling due May 1st, be funded by the holders taking 3d 
 mortgage bonds, at 70 cents on the dollar. That the interest 
 on the 2d mortgage bonds past due, and falling due on the 1st 
 of May and November of this year, and in May, 1858, be funded 
 with 3d mortgage bonds, at same rates. That the interest on 
 the 3d mortgage, and income bonds, which have been regularly 
 sold by the Company, be funded in kind, at 70 cents on the 
 dollar, for six semi-annual times. 
 
31 
 
 Such action would result in an immediate restoration of the 
 Company's credit—give a permanent market value to its se¬ 
 curities, and, with its earnings, enable its managers to perfect, 
 the road-bed and machinery, and supply any deficiency,—and, 
 subsequently, meet the interest as it becomes due. 
 
 The stockholders are expected, at the annual election for 
 Directors in March next, to take proper action in this matter; 
 and it is hoped that, in the meantime, the bondholders and 
 other creditors will prepare to co-operate in the developing this 
 unquestionably great and meritorious work. 
 
 Trusting that my views will be favorably entertained, 
 
 I am very respectfully, Ac., 
 
 ERASMUS GEST, 
 
 Preset ck SujpH C. W. dc Z. P. P. Co. 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
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